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Things have gotten worst Murbarak was forced to step down,,,and its sad as Egypt like Iraq was on its way to being a developed nation.,...
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IP addresses are NOT logged in this forum so there's no point asking. Please note that this forum is full of homophobes, racists, lunatics, schizophrenics & absolute nut jobs with a smattering of geniuses, Chinese chauvinists, Moderate Muslims and last but not least a couple of "know-it-alls" constantly sprouting their dubious wisdom. If you believe that content generated by unsavory characters might cause you offense PLEASE LEAVE NOW! Sammyboy Admin and Staff are not responsible for your hurt feelings should you choose to read any of the content here. The OTHER forum is HERE so please stop asking.
Suez Canal Blockage shows that Indians are all SCUM, IRRESPONSIBLE and Corrupted to the CORE
- Thread starter JurongEast
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The massive cargo ship the Ever Given has been dislodged from the Suez Canal after being wedged for close to a week. The 400-metre-long cargo ship, one of the largest in operation in the world, was successfully re-floated a short time ago, according to shipping monitors. The Suez Canal is one of the world’s most strategically important shipping routes and one of the highest traffic routes. The blockade of the canal had major trade ramifications including a dip in the oil price, but after 12 tugboats and land-clearing crews worked day and night to dislodge the ship, the Ever Given is expected to resume its journey.
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Successfully refloated or partially refloated??
One of these headlines is fake news.
Ever Given 'partially refloated' in the Suez Canal, almost a week after the giant container ship ran aground blocking the critical trade route
Jack Wittels, Salma El Wardany and Mirette Magdy18:22, Mar 29 2021
Suez Canal Authority/Facebook
The Ever Given container ship is refloated during an early morning operation in the Suez Canal where the vessel was wedged for nearly a week.
Engineers on Monday “partially refloated'' the colossal container ship that continues to block traffic through the Suez Canal, a canal services firm said, without providing further details about when the vessel would be set free.
Satellite data from MarineTraffic.com showed that the ship's bulbous bow, once firmly lodged in the canal's eastern bank, had been wrested from the shore.
Nearly a week ago, the skyscraper-sized Ever Given got stuck sideways in the crucial waterway, creating a massive traffic jam.
The obstruction is holding up US$9 billion (NZ$12.9b) each day in global trade and straining supply chains already burdened by the coronavirus pandemic.
One of these headlines is fake news.
Ever Given 'partially refloated' in the Suez Canal, almost a week after the giant container ship ran aground blocking the critical trade route
Jack Wittels, Salma El Wardany and Mirette Magdy18:22, Mar 29 2021
Suez Canal Authority/Facebook
The Ever Given container ship is refloated during an early morning operation in the Suez Canal where the vessel was wedged for nearly a week.
Engineers on Monday “partially refloated'' the colossal container ship that continues to block traffic through the Suez Canal, a canal services firm said, without providing further details about when the vessel would be set free.
Satellite data from MarineTraffic.com showed that the ship's bulbous bow, once firmly lodged in the canal's eastern bank, had been wrested from the shore.
Nearly a week ago, the skyscraper-sized Ever Given got stuck sideways in the crucial waterway, creating a massive traffic jam.
The obstruction is holding up US$9 billion (NZ$12.9b) each day in global trade and straining supply chains already burdened by the coronavirus pandemic.
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No it was not under mubarak.
Egypt can only prosper if cost of utilities are cheap.
The current mega dam being constructed in ethiopia may hinder flow of water into the nile. If some of those power are shared, between ethiopia, sudsn and egypt, it won't be so bad.
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Commentary: Too big to sail? Suez Canal debacle sparks debate over huge container ships
The grounding of the container ship in the Suez has given pause for thought about the growing mismatch between land and sea infrastructure, say observers.
FILE PHOTO: Stranded container ship Ever Given, one of the world's largest container ships, after it ran aground, March 26. SCA/via REUTERS
By Harry Dempsey,
Philip Georgiadis
and Sylvia Pfeifer
29 Mar 2021 02:06PM (Updated: 29 Mar 2021 02:20PM)
Bookmark
LONDON: The blocking of a crucial global trade route, which was built in the mid-19th century, by a modern 220,000-tonne ship as long as the Empire State Building is high has raised questions over the industry’s reliance on such huge vessels.
Salvage experts were on Sunday still working to refloat the Ever Given after it became wedged across the southern entrance to the Suez Canal last week, leaving about 330 vessels stranded on either side and sending tremors through global supply chains.
Shipowners accelerated their adoption of larger and larger ships to handle the continuing expansion of world trade in the 1990s. The largest container shipping vessels have quadrupled in size during the past 25 years.
“We have seen a continuous rat race in container shipping during the past decades to build larger ships,” said Stefan Verberckmoes, senior shipping analyst at industry consultancy Alphaliner.
READ: Commentary: Why the Suez Canal accident is a worst-case scenario for global trade
READ: Ever Given container ship stuck in Suez Canal 'partially refloated', says canal services firm
ECONOMIES OF SCALE
The biggest ships have the capacity to carry 24,000 20ft containers, enough to stretch 90 miles if they were loaded on a single-decked train. But there is a debate within the industry over whether vessels have outgrown the infrastructure needed to support them.
The chief executives of AP Moller-Maersk and Hapag-Lloyd, two of the world’s largest container groups, have both said that the latest container ships were the right size to handle the demand for global freight.
“This is one unfortunate incident,” said Rolf Habben Jansen, chief executive of Hapag-Lloyd. “I don’t think that should lead us to the conclusion that the ships are too big.”
Ships of this size are both more efficient and environmentally friendly, he said. The sheer scale of modern container vessels means they are estimated to be two and a half times more energy-efficient than rail and seven times more than road, according to the World Shipping Council.
Ships and boats are seen at the entrance of Suez Canal, which was blocked by the stranded container ship Ever Given that ran aground, Egypt, Mar 28, 2021. (Photo: REUTERS/Mohamed Abd El Ghany)
Shipping analysts agree that the Suez Canal, which has been frequently expanded, should be able to accommodate such big vessels.
But the largest container ships have reached the material limits of length: Stacking containers higher makes such ships more susceptible to high winds, while stacking them wider can increase hydrodynamic forces that make them harder to steer in tight spaces, such as ports and canals.
READ: Suez Canal blockage sets shipping rates racing, oil and gas tankers diverted away
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SIGN ME UP
BIG SHIPS NEED BIG PORTS
Ships struggled for profitability in the past decade, in large part because they often sailed half-empty, prompting consolidation and alliances to pool resources.
Larger ships are unable to service as many ports as smaller vessels. Shipping goods to big ports for onward shipment raises doubts over the cost-saving proposition of bigger ships. Insurers say they generate a disproportionately bigger cost when things go wrong.
Some believe the problems go deeper. The grounding of the container ship in the Suez has given pause for thought about the growing mismatch between land and sea infrastructure.
READ: Commentary: Tuas Mega Port strongly positions Singapore for a maritime future
At the start of the coronavirus pandemic, companies cut services in the face of falling demand. But as US consumers began to order the goods that they could not buy in shops online instead, the empty containers to transport them were not where they needed to be, namely China.
While inland facilities had to cope with challenges ranging from workers sick with COVID-19 to border restrictions, shipping bottlenecks were exacerbated because it takes ports a long time to unload and reload more than 10,000 containers from the huge ships.
JUMBO JETS OF THE SEA
Marc Levinson, a historian specialising in containers, said shipowners bore significant responsibility for the mess in global supply chains because of their pursuit of ever-larger vessels.
“Their attitude was, ‘We will do what’s best for us and ignore the rest of the logistics industry,’” he said. Larger vessels “worked when the ships were at sea but totally fouled up the land side of the transport system”.
Stranded ship Ever Given, one of the world's largest container ships, is seen after it ran aground, in Suez Canal, Egypt March 28, 2021. Suez Canal Authority/Handout via REUTERS
Large vessels will once again lengthen logjams as the chain of disruptions from the Suez accident plays out.
Soren Skou, Maersk’s chief executive, said huge vessels had been sailing through the Suez Canal for “years and years” and that the 220,000-tonne Ever Given had jammed itself at the narrowest point in the waterway.
“The jumbo jet Boeing 747 was the biggest for many decades. It was the optimal tradeoff between cost per seat and tradability. That’s where we are,” he said.
READ: Commentary: Singapore ports and ships are turning the tide on climate change
Hapag-Lloyd shows little sign of scaling down. In December, it committed to spending US$1 billion on six ultra-large container vessels powered by liquefied natural gas.
Still, the industry does seem to have taken at least some notice. The order book shows evidence of shipowners starting to downsize their workhorses of global trade towards vessels of about 15,000 containers.
Lars Jensen, chief executive of SeaIntelligence Consulting, said “we see a slight retrograde movement”.
Source: Financial Times/el
The grounding of the container ship in the Suez has given pause for thought about the growing mismatch between land and sea infrastructure, say observers.
FILE PHOTO: Stranded container ship Ever Given, one of the world's largest container ships, after it ran aground, March 26. SCA/via REUTERS
By Harry Dempsey,
Philip Georgiadis
and Sylvia Pfeifer
29 Mar 2021 02:06PM (Updated: 29 Mar 2021 02:20PM)
Bookmark
LONDON: The blocking of a crucial global trade route, which was built in the mid-19th century, by a modern 220,000-tonne ship as long as the Empire State Building is high has raised questions over the industry’s reliance on such huge vessels.
Salvage experts were on Sunday still working to refloat the Ever Given after it became wedged across the southern entrance to the Suez Canal last week, leaving about 330 vessels stranded on either side and sending tremors through global supply chains.
Shipowners accelerated their adoption of larger and larger ships to handle the continuing expansion of world trade in the 1990s. The largest container shipping vessels have quadrupled in size during the past 25 years.
“We have seen a continuous rat race in container shipping during the past decades to build larger ships,” said Stefan Verberckmoes, senior shipping analyst at industry consultancy Alphaliner.
READ: Commentary: Why the Suez Canal accident is a worst-case scenario for global trade
READ: Ever Given container ship stuck in Suez Canal 'partially refloated', says canal services firm
ECONOMIES OF SCALE
The biggest ships have the capacity to carry 24,000 20ft containers, enough to stretch 90 miles if they were loaded on a single-decked train. But there is a debate within the industry over whether vessels have outgrown the infrastructure needed to support them.
The chief executives of AP Moller-Maersk and Hapag-Lloyd, two of the world’s largest container groups, have both said that the latest container ships were the right size to handle the demand for global freight.
“This is one unfortunate incident,” said Rolf Habben Jansen, chief executive of Hapag-Lloyd. “I don’t think that should lead us to the conclusion that the ships are too big.”
Ships of this size are both more efficient and environmentally friendly, he said. The sheer scale of modern container vessels means they are estimated to be two and a half times more energy-efficient than rail and seven times more than road, according to the World Shipping Council.
Ships and boats are seen at the entrance of Suez Canal, which was blocked by the stranded container ship Ever Given that ran aground, Egypt, Mar 28, 2021. (Photo: REUTERS/Mohamed Abd El Ghany)
Shipping analysts agree that the Suez Canal, which has been frequently expanded, should be able to accommodate such big vessels.
But the largest container ships have reached the material limits of length: Stacking containers higher makes such ships more susceptible to high winds, while stacking them wider can increase hydrodynamic forces that make them harder to steer in tight spaces, such as ports and canals.
READ: Suez Canal blockage sets shipping rates racing, oil and gas tankers diverted away
Get the expert view
The best commentaries and analysis to better help you see beyond today’s news headlines. Subscribe to CNA’s Commentary newsletter.
This service is not intended for persons residing in the EU. By clicking subscribe, I agree to receive news updates and promotional material from Mediacorp and Mediacorp's partners.
SIGN ME UP
BIG SHIPS NEED BIG PORTS
Ships struggled for profitability in the past decade, in large part because they often sailed half-empty, prompting consolidation and alliances to pool resources.
Larger ships are unable to service as many ports as smaller vessels. Shipping goods to big ports for onward shipment raises doubts over the cost-saving proposition of bigger ships. Insurers say they generate a disproportionately bigger cost when things go wrong.
Some believe the problems go deeper. The grounding of the container ship in the Suez has given pause for thought about the growing mismatch between land and sea infrastructure.
READ: Commentary: Tuas Mega Port strongly positions Singapore for a maritime future
At the start of the coronavirus pandemic, companies cut services in the face of falling demand. But as US consumers began to order the goods that they could not buy in shops online instead, the empty containers to transport them were not where they needed to be, namely China.
While inland facilities had to cope with challenges ranging from workers sick with COVID-19 to border restrictions, shipping bottlenecks were exacerbated because it takes ports a long time to unload and reload more than 10,000 containers from the huge ships.
JUMBO JETS OF THE SEA
Marc Levinson, a historian specialising in containers, said shipowners bore significant responsibility for the mess in global supply chains because of their pursuit of ever-larger vessels.
“Their attitude was, ‘We will do what’s best for us and ignore the rest of the logistics industry,’” he said. Larger vessels “worked when the ships were at sea but totally fouled up the land side of the transport system”.
Stranded ship Ever Given, one of the world's largest container ships, is seen after it ran aground, in Suez Canal, Egypt March 28, 2021. Suez Canal Authority/Handout via REUTERS
Large vessels will once again lengthen logjams as the chain of disruptions from the Suez accident plays out.
Soren Skou, Maersk’s chief executive, said huge vessels had been sailing through the Suez Canal for “years and years” and that the 220,000-tonne Ever Given had jammed itself at the narrowest point in the waterway.
“The jumbo jet Boeing 747 was the biggest for many decades. It was the optimal tradeoff between cost per seat and tradability. That’s where we are,” he said.
READ: Commentary: Singapore ports and ships are turning the tide on climate change
Hapag-Lloyd shows little sign of scaling down. In December, it committed to spending US$1 billion on six ultra-large container vessels powered by liquefied natural gas.
Still, the industry does seem to have taken at least some notice. The order book shows evidence of shipowners starting to downsize their workhorses of global trade towards vessels of about 15,000 containers.
Lars Jensen, chief executive of SeaIntelligence Consulting, said “we see a slight retrograde movement”.
Source: Financial Times/el
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Ship backlogs from Suez chaos could take months to clear, container lines say
The stranding of a container ship in the Suez Canal has created disruptions in the global shipping industry that could take weeks and possibly months to clear, top container shipping lines said.
Ships and boats are seen at the entrance of Suez Canal, which was blocked by stranded container ship Ever Given that ran aground, Egypt March 28, 2021. REUTERS/Mohamed Abd El Ghany
29 Mar 2021 06:40PM
Bookmark
COPENHAGEN/LONDON: The stranding of a container ship in the Suez Canal has created disruptions in the global shipping industry that could take weeks and possibly months to clear, top container shipping lines said.
Around 30per cent of the world's shipping container volume - including goods like sofas, consumer electronics, apparel and shoes - moves through the 193 km (120 miles) Suez Canal daily. Empty containers, which Asian factories need to ship goods, are also caught up in the backlog.
"Even when the canal gets reopened, the ripple effects on global capacity and equipment are significant," the world's largest container shipping company Maersk said in a customer advisory on Monday.
Maersk has three vessels stuck in the canal and another 29 waiting to enter, it said, adding that it had so far rerouted 15 vessels to sail south of Africa instead.
"Assessing the current backlog of vessels, it could take six days or more for the complete queue to pass," it said.
Switzerland's MSC, the world's number 2 line, said separately on Saturday the situation was "going to result in one of the biggest disruptions to global trade in recent years".
"Unfortunately, even when the canal re-opens for the huge backlog of ships waiting at anchorage this will lead to a surge in arrivals at certain ports and we may experience fresh congestion problems," Caroline Becquart, Senior Vice President with MSC said in a statement.
"We envisage the second quarter of 2021 being more disrupted than the first three months, and perhaps even more challenging than it was at the end of last year."
Container shipping companies have been struggling for months with disruptions caused by the coronavirus pandemic and a surge in demand for retail goods that led to wider logistical bottlenecks around the world.
The Suez backlog threatens to make it even more difficult for European and U.S. companies to keep products in stock.
The United Kingdom Maritime Trade Operations naval authority said separately that ships diverting around Africa could mean that more traffic passes through high risk areas where pirate gangs operate.
"Whilst the threat of Somalia-based piracy is currently suppressed through a combination of military operations, application of BMP 5 (ship protection measures) and the presence of armed guards, an increase in maritime traffic through the area may present opportunities for Somali pirate groups to attack shipping," UKMTO said.
(Reporting by Nikolaj Skydsgaard and Jonathan Saul; Editing by Kevin Liffey and Edmund Blair and Kirsten Donovan)
Source: Reuters
The stranding of a container ship in the Suez Canal has created disruptions in the global shipping industry that could take weeks and possibly months to clear, top container shipping lines said.
Ships and boats are seen at the entrance of Suez Canal, which was blocked by stranded container ship Ever Given that ran aground, Egypt March 28, 2021. REUTERS/Mohamed Abd El Ghany
29 Mar 2021 06:40PM
Bookmark
COPENHAGEN/LONDON: The stranding of a container ship in the Suez Canal has created disruptions in the global shipping industry that could take weeks and possibly months to clear, top container shipping lines said.
Around 30per cent of the world's shipping container volume - including goods like sofas, consumer electronics, apparel and shoes - moves through the 193 km (120 miles) Suez Canal daily. Empty containers, which Asian factories need to ship goods, are also caught up in the backlog.
"Even when the canal gets reopened, the ripple effects on global capacity and equipment are significant," the world's largest container shipping company Maersk said in a customer advisory on Monday.
Maersk has three vessels stuck in the canal and another 29 waiting to enter, it said, adding that it had so far rerouted 15 vessels to sail south of Africa instead.
"Assessing the current backlog of vessels, it could take six days or more for the complete queue to pass," it said.
Switzerland's MSC, the world's number 2 line, said separately on Saturday the situation was "going to result in one of the biggest disruptions to global trade in recent years".
"Unfortunately, even when the canal re-opens for the huge backlog of ships waiting at anchorage this will lead to a surge in arrivals at certain ports and we may experience fresh congestion problems," Caroline Becquart, Senior Vice President with MSC said in a statement.
"We envisage the second quarter of 2021 being more disrupted than the first three months, and perhaps even more challenging than it was at the end of last year."
Container shipping companies have been struggling for months with disruptions caused by the coronavirus pandemic and a surge in demand for retail goods that led to wider logistical bottlenecks around the world.
The Suez backlog threatens to make it even more difficult for European and U.S. companies to keep products in stock.
The United Kingdom Maritime Trade Operations naval authority said separately that ships diverting around Africa could mean that more traffic passes through high risk areas where pirate gangs operate.
"Whilst the threat of Somalia-based piracy is currently suppressed through a combination of military operations, application of BMP 5 (ship protection measures) and the presence of armed guards, an increase in maritime traffic through the area may present opportunities for Somali pirate groups to attack shipping," UKMTO said.
(Reporting by Nikolaj Skydsgaard and Jonathan Saul; Editing by Kevin Liffey and Edmund Blair and Kirsten Donovan)
Source: Reuters
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The stern of a huge container ship that has been wedged across the busy Suez Canal shipping route for almost a week, has been freed from the shoreline. Tugboats and salvage crews took advantage of high tides in the early hours of Monday morning local time, to partially refloat the colossal container ship. But teams working to free the vessel says it is unclear just how long it will take to reopen the canal to the hundreds of ships backed up on either side of the canal. Tahlea Aualiitia has the story.
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Still stuck
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Suez Canal traffic resumes after stranded cargo ship is set free
Tugboats pulling the 400m-long and 59m-wide container ship Ever Given on Mar 29, 2021. (Photo: AFP PHOTO / HO / Suez Canal)
29 Mar 2021 09:30PM
(Updated: 29 Mar 2021 10:40PM)
Bookmark
CAIRO: Shipping traffic through Egypt's Suez Canal resumed on Monday (Mar 29) after a giant container ship that had been blocking the busy waterway for almost a week was refloated, the canal authority said.
A Reuters witness saw the ship moving and a shipping tracker and Egyptian TV showed it positioned in the centre of the canal.
"Admiral Osama Rabie, head of the Suez Canal Authority, has announced the resumption of shipping traffic in the Suez Canal," the Suez Canal Authority (SCA) said in a statement.
Television footage showed tugboat crews sounding their foghorns in celebration after the ship was dislodged.
The breakthrough followed what appeared to be a setback and came moments after the ship had temporarily settled back into the diagonal position it had been stuck in after running aground last Tuesday.
Helped by the peak of high tide, a flotilla of tugboats finally managed to wrench the bulbous bow from the canal’s sandy bank, setting it free.
After hauling the fully laden 220,000-tonne vessel over the canal bank, the salvage team was pulling the vessel toward the Great Bitter Lake, a wide stretch of water halfway between the north and south end of the canal, where the ship will undergo technical inspection, canal authorities said.
READ: Stranded Suez ship's owner, insurers face millions in claims
Satellite data from MarineTraffic.com confirmed that the ship was moving away from the shoreline toward the centre of the artery.
Evergreen Line said on Monday that the Ever Given container ship would be inspected for seaworthiness.
Taiwan listed Evergreen, which is leasing the ship, said decisions regarding the vessel's cargo would be made after the inspection and that it would coordinate with the ship's owner after investigation reports were completed.
READ: Singapore navigating shipping squeeze, container congestion amid surge in cargo demand
KNOCK-ON EFFECTS
The obstruction has created a massive traffic jam in the vital passage, holding up US$9 billion each day in global trade and straining supply chains already burdened by the coronavirus pandemic.
Egypt was estimated to have lost about US$12 million to US$14 million in revenue from the canal for each day it was closed, according to the canal authority.
The tailback of ships has reached 425 at the two ends of the canal, in the Mediterranean and Red Sea, carrying everything from crude oil to cattle.
The SCA has said it can accelerate convoys through the canal once the Ever Given is freed. "We will not waste one second," Rabie told Egyptian state television.
He said it could take from two-and-a-half to three days to clear the backlog.
Shipping group Maersk said the knock-on disruptions to global shipping could take weeks or months to unravel.
Tugboats pulling the 400m-long and 59m-wide container ship Ever Given on Mar 29, 2021. (Photo: AFP PHOTO / HO / Suez Canal)
29 Mar 2021 09:30PM
(Updated: 29 Mar 2021 10:40PM)
Bookmark
CAIRO: Shipping traffic through Egypt's Suez Canal resumed on Monday (Mar 29) after a giant container ship that had been blocking the busy waterway for almost a week was refloated, the canal authority said.
A Reuters witness saw the ship moving and a shipping tracker and Egyptian TV showed it positioned in the centre of the canal.
"Admiral Osama Rabie, head of the Suez Canal Authority, has announced the resumption of shipping traffic in the Suez Canal," the Suez Canal Authority (SCA) said in a statement.
Television footage showed tugboat crews sounding their foghorns in celebration after the ship was dislodged.
The breakthrough followed what appeared to be a setback and came moments after the ship had temporarily settled back into the diagonal position it had been stuck in after running aground last Tuesday.
Helped by the peak of high tide, a flotilla of tugboats finally managed to wrench the bulbous bow from the canal’s sandy bank, setting it free.
After hauling the fully laden 220,000-tonne vessel over the canal bank, the salvage team was pulling the vessel toward the Great Bitter Lake, a wide stretch of water halfway between the north and south end of the canal, where the ship will undergo technical inspection, canal authorities said.
READ: Stranded Suez ship's owner, insurers face millions in claims
Satellite data from MarineTraffic.com confirmed that the ship was moving away from the shoreline toward the centre of the artery.
Evergreen Line said on Monday that the Ever Given container ship would be inspected for seaworthiness.
Taiwan listed Evergreen, which is leasing the ship, said decisions regarding the vessel's cargo would be made after the inspection and that it would coordinate with the ship's owner after investigation reports were completed.
READ: Singapore navigating shipping squeeze, container congestion amid surge in cargo demand
KNOCK-ON EFFECTS
The obstruction has created a massive traffic jam in the vital passage, holding up US$9 billion each day in global trade and straining supply chains already burdened by the coronavirus pandemic.
Egypt was estimated to have lost about US$12 million to US$14 million in revenue from the canal for each day it was closed, according to the canal authority.
The tailback of ships has reached 425 at the two ends of the canal, in the Mediterranean and Red Sea, carrying everything from crude oil to cattle.
The SCA has said it can accelerate convoys through the canal once the Ever Given is freed. "We will not waste one second," Rabie told Egyptian state television.
He said it could take from two-and-a-half to three days to clear the backlog.
Shipping group Maersk said the knock-on disruptions to global shipping could take weeks or months to unravel.
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Wat about being with a hot ah neh chick?
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No thanks. I have zero physical attraction to any dark coloured chicks. My max threshold is milk tea colour - Vietnamese or Thai ok.
And not to mention their indian accent.... Hear already want to jump off the building
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https://asia.nikkei.com/Business/Tr...-resumes-after-ship-refloated-authorities-say
Suez Canal traffic resumes after ship refloated, authorities say
Ever Given dislodged in end to six-day blockage
A view shows the container ship Ever Given after it was partially refloated in the Suez Canal on March 29. (Photo courtesy of Suez Canal Authority)
MAO KAWANO and AKANE OKUTSU, Nikkei staff writersMarch 29, 2021 13:32 JSTUpdated on March 29, 2021 23:43 JST
IMABARI, Japan/TOKYO -- Traffic on the Suez Canal resumed Monday after the stranded cargo ship Ever Given was fully refloated, ending the six-day blockage of one of the world's busiest maritime lanes.
At least 369 vessels from container ships to oil tankers were waiting to pass through the canal, and the backlog could take between two and a half and three days to clear, Suez Canal Authority chairman Lieutenant-General Osama Rabie said.
"We will not waste one second," Rabie told Egyptian state television.
Ever Given will be transported to Great Bitter Lake in the canal, where it will be inspected for damages, its Japanese owner Shoei Kisen said in a Monday statement confirming that the ship had been freed at 3:04 p.m. Egyptian time.
"We are thankful for the extensive cooperation we received from the Suez Canal Authority, the salvage companies and other relevant parties in response to the accident," the company said.
The ship will return to sea as soon as it can, it said.
Authorities and its owner had said earlier that day that the cargo ship was starting to move following efforts over the weekend and through Monday to refloat it.
The Suez Canal Authority had said that the Japanese-owned container ship had successfully floated in response to efforts by a fleet of tugboats. The ship's course was significantly altered and its stern was now more than 100 meters away from the shore, the authority said.
Maneuvers were scheduled to resume again as the water level in the canal rises to its maximum height, allowing the ship's course to be completely modified.
Rabie "sent a message of reassurance to the international maritime community to resume navigation in the canal once the vessel is fully floated soon and directed to wait in the Lakes region for its technical examination," said the SCA statement.
Shoei Kisen told Nikkei that the ship was pulled by tugboats, as well as engaging the engine of the ship to add power.
The containership, 400 meters long and weighing more than 200,000 tons, became stranded in the canal on March 23 after hitting the banks of the waterway. It brought the canal, one of the world's busiest shipping lanes, to a standstill, sparking fears of disruption to world trade. About 12% of global trade goes through Suez, and hundreds of vessels have been backed up at each end of the 190 km canal.
Teams using excavators and tugs have battled to free the ship, hoping to refloat it without having to remove its cargo -- a complex and time-consuming operation that would involve handling thousands of containers far from the usual port facilities.
Despite the initial hope to rescue the ship on Saturday, the grounded part of the ship was "heavier than expected," Toshiaki Fujiwara, senior managing director, told Nikkei. "That was why it was not successful" over the weekend, he said.
Inchcape Shipping Services, a provider of maritime services, said in a tweet on Monday that the Ever Given "was successfully re-floated at 04:30" local time.
"She is being secured at the moment. More information about next steps will follow once they are known," Inchcape said.
Suez Canal traffic resumes after ship refloated, authorities say
Ever Given dislodged in end to six-day blockage
A view shows the container ship Ever Given after it was partially refloated in the Suez Canal on March 29. (Photo courtesy of Suez Canal Authority)
MAO KAWANO and AKANE OKUTSU, Nikkei staff writersMarch 29, 2021 13:32 JSTUpdated on March 29, 2021 23:43 JST
IMABARI, Japan/TOKYO -- Traffic on the Suez Canal resumed Monday after the stranded cargo ship Ever Given was fully refloated, ending the six-day blockage of one of the world's busiest maritime lanes.
At least 369 vessels from container ships to oil tankers were waiting to pass through the canal, and the backlog could take between two and a half and three days to clear, Suez Canal Authority chairman Lieutenant-General Osama Rabie said.
"We will not waste one second," Rabie told Egyptian state television.
Ever Given will be transported to Great Bitter Lake in the canal, where it will be inspected for damages, its Japanese owner Shoei Kisen said in a Monday statement confirming that the ship had been freed at 3:04 p.m. Egyptian time.
"We are thankful for the extensive cooperation we received from the Suez Canal Authority, the salvage companies and other relevant parties in response to the accident," the company said.
The ship will return to sea as soon as it can, it said.
Authorities and its owner had said earlier that day that the cargo ship was starting to move following efforts over the weekend and through Monday to refloat it.
The Suez Canal Authority had said that the Japanese-owned container ship had successfully floated in response to efforts by a fleet of tugboats. The ship's course was significantly altered and its stern was now more than 100 meters away from the shore, the authority said.
Maneuvers were scheduled to resume again as the water level in the canal rises to its maximum height, allowing the ship's course to be completely modified.
Rabie "sent a message of reassurance to the international maritime community to resume navigation in the canal once the vessel is fully floated soon and directed to wait in the Lakes region for its technical examination," said the SCA statement.
Shoei Kisen told Nikkei that the ship was pulled by tugboats, as well as engaging the engine of the ship to add power.
The containership, 400 meters long and weighing more than 200,000 tons, became stranded in the canal on March 23 after hitting the banks of the waterway. It brought the canal, one of the world's busiest shipping lanes, to a standstill, sparking fears of disruption to world trade. About 12% of global trade goes through Suez, and hundreds of vessels have been backed up at each end of the 190 km canal.
Teams using excavators and tugs have battled to free the ship, hoping to refloat it without having to remove its cargo -- a complex and time-consuming operation that would involve handling thousands of containers far from the usual port facilities.
Despite the initial hope to rescue the ship on Saturday, the grounded part of the ship was "heavier than expected," Toshiaki Fujiwara, senior managing director, told Nikkei. "That was why it was not successful" over the weekend, he said.
Inchcape Shipping Services, a provider of maritime services, said in a tweet on Monday that the Ever Given "was successfully re-floated at 04:30" local time.
"She is being secured at the moment. More information about next steps will follow once they are known," Inchcape said.
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369 vessels waiting to pass. crew must be wanking off furiously. and perhaps suck each other’s cock.
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successfully refloated, with egyptian tug boat crew celebrating with cheers, song, dance, horns.Successfully refloated or partially refloated??
One of these headlines is fake news.
Ever Given 'partially refloated' in the Suez Canal, almost a week after the giant container ship ran aground blocking the critical trade route
Jack Wittels, Salma El Wardany and Mirette Magdy18:22, Mar 29 2021
Suez Canal Authority/Facebook
The Ever Given container ship is refloated during an early morning operation in the Suez Canal where the vessel was wedged for nearly a week.
Engineers on Monday “partially refloated'' the colossal container ship that continues to block traffic through the Suez Canal, a canal services firm said, without providing further details about when the vessel would be set free.
Satellite data from MarineTraffic.com showed that the ship's bulbous bow, once firmly lodged in the canal's eastern bank, had been wrested from the shore.
Nearly a week ago, the skyscraper-sized Ever Given got stuck sideways in the crucial waterway, creating a massive traffic jam.
The obstruction is holding up US$9 billion (NZ$12.9b) each day in global trade and straining supply chains already burdened by the coronavirus pandemic.
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Homosexuality is quite rampant among crews from big vessels like tankers, LNGs.
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U should go for the Northern ones,,,,this one ok wat
Janhvi Kapoor misses her light brown hair, asks fans if its ‘time to go back’
Janhvi Kapoor asks fans if its "time to go back" to brown hair
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March 30, 2021
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India — Janhvi Kapoor is taking a break from her hectic schedule and enjoying with little sister Khushi Kapoor in LA. The actor who recently appeared on the silver screen in horror-comedy Roohi alongside Rajkummar Rao and Varun Sharma is finally winding down after going all out for the promotions and release of her movie. Janhvi has been posting updates from the picturesque locales around LA, and most recently the actor went deep into her photographs and dug out a major throwback picture of herself when she had lighter brown hair. She shared the close up photograph in which the doe-eyed beauty is looking in the distance, her eyes lined with kohl sporting heavy earrings and a nose ring. Janhvi wrote. “Major #tbt Kind of missing my light brown hair days. time to go back??”
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Now its ownself praise ownself
The Ever Given was expected to be stuck in the Suez Canal for 'weeks still', so how did crews manage to free it?
Posted 4hhours ago
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WATCH
Duration: 1 minute 56 seconds1m 56s
The Suez Canal Authority has praised the efforts of those who helped refloat the Ever Given.
Share
Salvage teams have finally managed to free the Ever Given, a colossal container ship that was stranded for nearly a week in the Suez Canal.
The successful re-floating mission has ended a crisis that clogged one of the world's most vital trade routes for oil and grain and other trade linking Asia and Europe.
Just a few days ago, the Suez Canal Authority estimated it could take "weeks still" to free the 400-metre-long vessel.
That was echoed by Peter Berdowski, the head of Dutch company Boskalis, which helped to free the ship.
"We can't exclude it might take weeks, depending on the situation," he said.
How did they manage to free the skyscraper-sized ship so fast?
This viral photo showing an excavator trying to dig the Ever Given from the banks of the Suez reflects the massive challenge crews faced in trying to re-float the massive cargo ship. (
AP: Suez Canal Authority
)
On Monday local time, a flotilla of tugboats, helped by the tides, managed to wrench the bow of the Ever Given from the canal's sandy bank.
Fourteen tugboats pushed and pulled to budge the behemoth from the shore, and their work was buoyed by a high tide at dawn.
Specialised dredgers also dug out the stern and vacuumed sand and m&d from beneath the bow.
The operation was extremely delicate. While the Ever Given was stuck, the rising and falling tides put stress on the vessel, raising concerns it could crack.
This satellite photo from Planet Labs Inc. shows the Ever Given cargo ship stuck on Monday, March 29, 2021.(
Planet Labs Via AP
)
Speaking at a news conference on Monday evening, Suez Canal Authority chief Lieutenant General Osama Rabei praised the efforts of the workers to re-float the ship, saying they "achieved a very difficult mission in record time," without damaging the vessel or its cargo.
In the village of Amer, which overlooks the canal, residents cheered as the vessel moved along.
How long will it take to clear the traffic jam in the Suez?
Navigation in the canal resumed on Monday at 6:00pm local time, Lieutenant General Rabei said, adding that the first ships in the queue were moving carried livestock.
From the city of Suez, ships stacked with containers could be seen exiting the canal into the Red Sea.
Lieutenant General Rabei said at least 113 of more than 420 vessels that had waited for the Ever Given to be freed were expected to cross the canal by Tuesday morning.
"Within 12 hours, 113 ships will cross in different convoys, either from Port Said or from Suez," he said.
The Ever Given has moved to the Great Bitter Lake, a wide stretch of water halfway between the north and south ends of the canal where it can be inspected for damage, Evergreen Marine Corporation said.
The ship's location was confirmed on ship-tracking website Vessel Finder on Tuesday afternoon AEDT.
A composite image showing the location of the Ever Given in the Great Bitter Lake.
How much has this all cost?
Lieutenant General Rabei estimated the cost of losses due to delays ranged between $US12 to $15 million per day.
The crisis lasted nearly a week.
"The ship is now in the lakes for inspection after the accident because we cannot allow it to sail until we are completely sure of its safety," Lieutenant General Rabei said.
"And at the same time, the investigation will take place and the cost of compensation will be revealed."
The Ever Given being pulled by one of the Suez Canal tugboats.(
Suez Canal Authority Via AP
)
The head of the Suez Canal Authority also said the accident had proved the importance of the canal to the world.
"Since the time of the accident, oil prices rose … the number of ships waiting until now, 422 ships, and none of them thought of taking an alternative route despite the canal being stopped for six days," he said.
"If they saw an alternative, they would have used it. The Cape of Good Hope is 10,000 miles more, which means three weeks more in addition to the security risks in it."
How did the Ever Given become stuck in the first place?
While it's not entirely clear what caused the ship to become stranded, the Suez Canal Authority said it had run aground after losing visibility and the ability to steer due to high winds and a dust storm.
Evergreen Marine Corporation — the Taiwan-based shipping company that operates the vessel — also blamed strong winds.
Lieutenant General Rabei said on Saturday that the strong winds and weather were not the sole responsible factors, saying there "may have been technical or human errors".
Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume.
WATCH
Duration: 1 minute 38 seconds1m 38s
ABC analyst Casey Briggs says the ship's bulbous bow is making it difficult for salvagers to free it.
ABC/AP
Posted 4hhours ago
The Ever Given was expected to be stuck in the Suez Canal for 'weeks still', so how did crews manage to free it?
Posted 4hhours ago
Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume.
WATCH
Duration: 1 minute 56 seconds1m 56s
The Suez Canal Authority has praised the efforts of those who helped refloat the Ever Given.
Share
Salvage teams have finally managed to free the Ever Given, a colossal container ship that was stranded for nearly a week in the Suez Canal.
The successful re-floating mission has ended a crisis that clogged one of the world's most vital trade routes for oil and grain and other trade linking Asia and Europe.
Just a few days ago, the Suez Canal Authority estimated it could take "weeks still" to free the 400-metre-long vessel.
That was echoed by Peter Berdowski, the head of Dutch company Boskalis, which helped to free the ship.
"We can't exclude it might take weeks, depending on the situation," he said.
How did they manage to free the skyscraper-sized ship so fast?
This viral photo showing an excavator trying to dig the Ever Given from the banks of the Suez reflects the massive challenge crews faced in trying to re-float the massive cargo ship. (
AP: Suez Canal Authority
)
On Monday local time, a flotilla of tugboats, helped by the tides, managed to wrench the bow of the Ever Given from the canal's sandy bank.
Fourteen tugboats pushed and pulled to budge the behemoth from the shore, and their work was buoyed by a high tide at dawn.
Specialised dredgers also dug out the stern and vacuumed sand and m&d from beneath the bow.
The operation was extremely delicate. While the Ever Given was stuck, the rising and falling tides put stress on the vessel, raising concerns it could crack.
This satellite photo from Planet Labs Inc. shows the Ever Given cargo ship stuck on Monday, March 29, 2021.(
Planet Labs Via AP
)
Speaking at a news conference on Monday evening, Suez Canal Authority chief Lieutenant General Osama Rabei praised the efforts of the workers to re-float the ship, saying they "achieved a very difficult mission in record time," without damaging the vessel or its cargo.
In the village of Amer, which overlooks the canal, residents cheered as the vessel moved along.
How long will it take to clear the traffic jam in the Suez?
Navigation in the canal resumed on Monday at 6:00pm local time, Lieutenant General Rabei said, adding that the first ships in the queue were moving carried livestock.
From the city of Suez, ships stacked with containers could be seen exiting the canal into the Red Sea.
Lieutenant General Rabei said at least 113 of more than 420 vessels that had waited for the Ever Given to be freed were expected to cross the canal by Tuesday morning.
"Within 12 hours, 113 ships will cross in different convoys, either from Port Said or from Suez," he said.
Where is the Ever Given now?
The Ever Given has moved to the Great Bitter Lake, a wide stretch of water halfway between the north and south ends of the canal where it can be inspected for damage, Evergreen Marine Corporation said.
The ship's location was confirmed on ship-tracking website Vessel Finder on Tuesday afternoon AEDT.
A composite image showing the location of the Ever Given in the Great Bitter Lake.
How much has this all cost?
Lieutenant General Rabei estimated the cost of losses due to delays ranged between $US12 to $15 million per day.
The crisis lasted nearly a week.
"The ship is now in the lakes for inspection after the accident because we cannot allow it to sail until we are completely sure of its safety," Lieutenant General Rabei said.
"And at the same time, the investigation will take place and the cost of compensation will be revealed."
The Ever Given being pulled by one of the Suez Canal tugboats.(
Suez Canal Authority Via AP
)
The head of the Suez Canal Authority also said the accident had proved the importance of the canal to the world.
"Since the time of the accident, oil prices rose … the number of ships waiting until now, 422 ships, and none of them thought of taking an alternative route despite the canal being stopped for six days," he said.
"If they saw an alternative, they would have used it. The Cape of Good Hope is 10,000 miles more, which means three weeks more in addition to the security risks in it."
How did the Ever Given become stuck in the first place?
While it's not entirely clear what caused the ship to become stranded, the Suez Canal Authority said it had run aground after losing visibility and the ability to steer due to high winds and a dust storm.
Evergreen Marine Corporation — the Taiwan-based shipping company that operates the vessel — also blamed strong winds.
Lieutenant General Rabei said on Saturday that the strong winds and weather were not the sole responsible factors, saying there "may have been technical or human errors".
Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume.
WATCH
Duration: 1 minute 38 seconds1m 38s
ABC analyst Casey Briggs says the ship's bulbous bow is making it difficult for salvagers to free it.
ABC/AP
Posted 4hhours ago
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Commentary: Suez Canal incident reveals why global trade depends heavily on shipping with few alternatives
While the ship in the narrow Suez Canal may be cleared soon, the financial repercussions and serious discussions of alternatives are just beginning, says NUS’ Associate Professor Goh Puay Guan.
A view shows Ever Given container ship in Suez Canal in this Maxar Technologies satellite image taken on March 28, 2021. Maxar Technologies/Handout via REUTERS
By Goh Puay Guan
30 Mar 2021 06:00AM (Updated: 30 Mar 2021 11:48AM)
Bookmark
SINGAPORE: The Egyptian authorities revealed on Monday (Mar 29) that the traffic through the Suez Canal had resumed after the ship called Ever Given, which had been grounded for almost a week, was refloated.
Although there was general relief about this development, the incident has overall sparked a rethinking about what could have been done to avoid this ugly mess.
Much as businesses hope the episode is an exception, corporate boardrooms all over the world will be tearing apart how things can be done better.
IMPLICATIONS FOR GLOBAL SUPPLY CHAINS
For one, the repercussions on shipments, oil and commodity prices, and availability of goods have been huge. Those in Europe have heard the news that they may face a shortage in instant coffee, as the ingredients could not be shipped over.
Container shipping costs have soared by four times year-on-year, continuing a years-long trend accelerated by COVID-19.
While the ship has been freed and the jam will eventually be alleviated – no matter how long that may take - what are the potential ramifications for global supply chains?
At stake are liabilities for missed deliveries, lost sales, manufacturing down time, expired products, and insurance claims.
READ: Commentary: Too big to sail? Suez Canal debacle sparks debate over huge container ships
This is not only for the Ever Given vessel, but for the delayed deliveries of other affected vessels. Who absorbs these costs will be a lengthy affair of multi-party negotiation among shippers, consignees, shipping lines, freight forwarders, and insurance companies.
The extent of these potential commercial liabilities will increase until the jam of vessels in the waters clears up, considering that billions of dollars of trade passes through the Suez Canal each day.
Countries that have strategic stockpiles can breathe easier. As Transport Minister Ong Ye Kung explained, this is precisely the kind of scenario Singapore has planned drawdown on inventories for.
WHY ALTERNATIVE MODES OF TRANSPORTING GOODS ARE NOT PERFECT
In the short term, shipping routes are still being re-routed, primarily through the Cape of Good Hope in Africa.
Billions of dollars of cargo have been stalled at either end of the Suez Canal since Tuesday's blockage of the vital shipping lane forcing firms to consider taking a longer and more expensive route around Africa's Cape of Good Hope AFP/Ahmed HASAN
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This is a longer distance of over 10 days, leading to delays and higher costs. Although the immediate delay is on the Europe-Asia routes, the delays will also affect all other shipping as ship capacity is tied up.
So the question to ask is – will this mean an increase in the use of other transportation modes?
Air freight could be used, although this is more expensive and likely to be activated for urgent shipments, such as out-of-stock raw materials for production, or spare parts for maintenance and repair.
Much depends on where you’re shipping from, the distance, the volume and weight of goods.
A piece of furniture from Shenzhen to the US can cost US$1,200 by ocean but a whopping US$4,000 by air, according to freight management company Freightos.
READ: Commentary: Why the Suez Canal accident is a worst-case scenario for global trade
Air cargo can be used for smaller volume and low weight items, such as e-commerce purchases of consumer items like cosmetics, fashion and electronics, where buyers may be impatient while air freight costs remain low.
But air freight is unlikely to be a large substitute for large shipping by corporations, when such routine replenishment orders planned ahead of time are usually more efficiently transported through seaborne trade.
When businesses don’t use ships, they use overland transport such as rail and trucking.
This had already seen a surge during the pandemic-induced port delays last year, which has fueled the growth of tech integration to ensure seamless connectivity between airports, seaports and last-mile trucking as e-commerce boomed all around the world, allowing businesses to pick and choose routes with the greatest efficiencies.
In part, this explosion of infrastructure has been underway pre-pandemic to serve burgeoning trade between China and the rest of the world.
One example of a rail connection that has seen robust trade is the one that goes from China to Europe, passing through Russia and Central Asia, were introduced in the earlier part of 2010s, and have become part of the Belt and Road Initiative.
Rail and truck shipments from China to Europe have also increased during this period – by almost double according to forwarding group Geodis.
The Belt and Road Initiative envisages linking China with Africa, Asia and Europe through a network of ports, railways, roads and industrial parks (Photo: AFP/JANEK SKARZYNSKI0
But these modes of transportation will not be able to substitute sea freight, especially because land-based modes - limited by vehicular size, with time, fuel and manpower costs making it less efficient compared to maritime shipping - have also been traditionally more expensive than sea freight.
The pandemic has also made long-distance, multi-country cross-border trucking less efficient as stepped-up checks, screening and customs slowed waiting times at the China-Vietnam border crossing and more.
Perhaps vaccinating drivers, which is what Malaysia and Singapore have pledged to undertake, could alleviate pain points.
While they are an important part of the alternative shipment modes for companies, whether they become more widely adopted in the long term, would depend on price, and how seamless border clearance processes get.
SUPPLY CHAIN RESILIENCE IS EXPENSIVE
In the longer term, the Suez Canal incident is likely to be part of the larger trend in recent years that sees companies focusing more on supply chain and business continuity.
Ensuring supply chain continuity is more expensive though. It involves keeping more inventory, rather than focusing on Just-in-Time (JIT) deliveries.
READ: Commentary: The changing geopolitics of clean energy will impact Singapore’s Green Plan
It requires securing multiple sources to ensure supply continuity, which can also increase the cost of logistics and the price of products. Countries and companies are also exploring near-shoring alternatives, especially in critical supplies such as food, medicine and energy, where possible.
For example, Singapore’s focus on food resilience may see vegetables sourced from local producers that could be more expensive since these are produced in land-scarce Singapore, using advanced vertical farming technology.
Companies will have to weigh trade-offs between the costs of contingency planning versus the costs of disruption.
Ships and boats are seen at the entrance of Suez Canal, which was blocked by stranded container ship Ever Given that ran aground, Egypt March 28, 2021. REUTERS/Mohamed Abd El Ghany
If disruptions are rare like black swan events, then it does not make sense to pay for the extra costs of risk mitigation. If, however, we expect to see some form of disruption regularly, then it would make commercial sense to pay for the extra costs of back-up plans.
CHANGING GLOBAL SUPPLY CHAIN STRUCTURES
Overall, an incident like what happened at the Suez Canal would likely not cause major changes to supply chains.
However, the global supply chain landscape has been changing and adapting, reshaped by new emerging markets, trade tariffs, impact of technologies such as automation and e-commerce, and most recently, COVID-19 disruptions.
We are more likely to see a portfolio approach rather than a one-size-fits-all approach, with a business mix that is spread across different customers and different countries.
A handout picture released by the Suez Canal Authority on Mar 25, 2021 shows Egyptian tug boats trying to free Taiwan-owned MV Ever Given (Evergreen), a 400m long and 59m wide vessel, lodged sideways and impeding all traffic across the waterway of Egypt's Suez Canal. Egypt's Suez Canal Authority said it was "temporarily suspending navigation" until refloating of the MV Ever Given ship was completed on one of the busiest maritime trade routes. Suez CANAL / AFP
Companies may feel that with certain markets, products and trade routes, diversifying is key, whereas in less risky markets or more stable businesses, going with tried and trusted options is adequate and may be more cost-effective.
Companies need to understand the overall trend lines and invest based on a medium-and-long-term perspective, while preparing for the inevitable short-term operational fluctuations.
READ: Commentary: Taiwan’s national security depends on a highly sought-after product
Global supply chains will continue to become more varied, with regional supply chains interlinked globally as well.
The Suez Canal incident is one more reminder of the need for supply chain resilience in Singapore’s long-term planning.
Goh Puay Guan is an associate professor in the Analytics & Operations Department at the National University of Singapore (NUS) Business School. He is also the Academic Director of the NUS MSc in Industry 4.0 programme. The opinions expressed are those of the writer and do not represent the views and opinions of NUS.
Source: CNA/ml
While the ship in the narrow Suez Canal may be cleared soon, the financial repercussions and serious discussions of alternatives are just beginning, says NUS’ Associate Professor Goh Puay Guan.
A view shows Ever Given container ship in Suez Canal in this Maxar Technologies satellite image taken on March 28, 2021. Maxar Technologies/Handout via REUTERS
By Goh Puay Guan
30 Mar 2021 06:00AM (Updated: 30 Mar 2021 11:48AM)
Bookmark
SINGAPORE: The Egyptian authorities revealed on Monday (Mar 29) that the traffic through the Suez Canal had resumed after the ship called Ever Given, which had been grounded for almost a week, was refloated.
Although there was general relief about this development, the incident has overall sparked a rethinking about what could have been done to avoid this ugly mess.
Much as businesses hope the episode is an exception, corporate boardrooms all over the world will be tearing apart how things can be done better.
IMPLICATIONS FOR GLOBAL SUPPLY CHAINS
For one, the repercussions on shipments, oil and commodity prices, and availability of goods have been huge. Those in Europe have heard the news that they may face a shortage in instant coffee, as the ingredients could not be shipped over.
Container shipping costs have soared by four times year-on-year, continuing a years-long trend accelerated by COVID-19.
While the ship has been freed and the jam will eventually be alleviated – no matter how long that may take - what are the potential ramifications for global supply chains?
At stake are liabilities for missed deliveries, lost sales, manufacturing down time, expired products, and insurance claims.
READ: Commentary: Too big to sail? Suez Canal debacle sparks debate over huge container ships
This is not only for the Ever Given vessel, but for the delayed deliveries of other affected vessels. Who absorbs these costs will be a lengthy affair of multi-party negotiation among shippers, consignees, shipping lines, freight forwarders, and insurance companies.
The extent of these potential commercial liabilities will increase until the jam of vessels in the waters clears up, considering that billions of dollars of trade passes through the Suez Canal each day.
Countries that have strategic stockpiles can breathe easier. As Transport Minister Ong Ye Kung explained, this is precisely the kind of scenario Singapore has planned drawdown on inventories for.
WHY ALTERNATIVE MODES OF TRANSPORTING GOODS ARE NOT PERFECT
In the short term, shipping routes are still being re-routed, primarily through the Cape of Good Hope in Africa.
Billions of dollars of cargo have been stalled at either end of the Suez Canal since Tuesday's blockage of the vital shipping lane forcing firms to consider taking a longer and more expensive route around Africa's Cape of Good Hope AFP/Ahmed HASAN
Get the expert view
The best commentaries and analysis to better help you see beyond today’s news headlines. Subscribe to CNA’s Commentary newsletter.
This service is not intended for persons residing in the EU. By clicking subscribe, I agree to receive news updates and promotional material from Mediacorp and Mediacorp's partners.
SIGN ME UP
This is a longer distance of over 10 days, leading to delays and higher costs. Although the immediate delay is on the Europe-Asia routes, the delays will also affect all other shipping as ship capacity is tied up.
So the question to ask is – will this mean an increase in the use of other transportation modes?
Air freight could be used, although this is more expensive and likely to be activated for urgent shipments, such as out-of-stock raw materials for production, or spare parts for maintenance and repair.
Much depends on where you’re shipping from, the distance, the volume and weight of goods.
A piece of furniture from Shenzhen to the US can cost US$1,200 by ocean but a whopping US$4,000 by air, according to freight management company Freightos.
READ: Commentary: Why the Suez Canal accident is a worst-case scenario for global trade
Air cargo can be used for smaller volume and low weight items, such as e-commerce purchases of consumer items like cosmetics, fashion and electronics, where buyers may be impatient while air freight costs remain low.
But air freight is unlikely to be a large substitute for large shipping by corporations, when such routine replenishment orders planned ahead of time are usually more efficiently transported through seaborne trade.
When businesses don’t use ships, they use overland transport such as rail and trucking.
This had already seen a surge during the pandemic-induced port delays last year, which has fueled the growth of tech integration to ensure seamless connectivity between airports, seaports and last-mile trucking as e-commerce boomed all around the world, allowing businesses to pick and choose routes with the greatest efficiencies.
In part, this explosion of infrastructure has been underway pre-pandemic to serve burgeoning trade between China and the rest of the world.
One example of a rail connection that has seen robust trade is the one that goes from China to Europe, passing through Russia and Central Asia, were introduced in the earlier part of 2010s, and have become part of the Belt and Road Initiative.
Rail and truck shipments from China to Europe have also increased during this period – by almost double according to forwarding group Geodis.
The Belt and Road Initiative envisages linking China with Africa, Asia and Europe through a network of ports, railways, roads and industrial parks (Photo: AFP/JANEK SKARZYNSKI0
But these modes of transportation will not be able to substitute sea freight, especially because land-based modes - limited by vehicular size, with time, fuel and manpower costs making it less efficient compared to maritime shipping - have also been traditionally more expensive than sea freight.
The pandemic has also made long-distance, multi-country cross-border trucking less efficient as stepped-up checks, screening and customs slowed waiting times at the China-Vietnam border crossing and more.
Perhaps vaccinating drivers, which is what Malaysia and Singapore have pledged to undertake, could alleviate pain points.
While they are an important part of the alternative shipment modes for companies, whether they become more widely adopted in the long term, would depend on price, and how seamless border clearance processes get.
SUPPLY CHAIN RESILIENCE IS EXPENSIVE
In the longer term, the Suez Canal incident is likely to be part of the larger trend in recent years that sees companies focusing more on supply chain and business continuity.
Ensuring supply chain continuity is more expensive though. It involves keeping more inventory, rather than focusing on Just-in-Time (JIT) deliveries.
READ: Commentary: The changing geopolitics of clean energy will impact Singapore’s Green Plan
It requires securing multiple sources to ensure supply continuity, which can also increase the cost of logistics and the price of products. Countries and companies are also exploring near-shoring alternatives, especially in critical supplies such as food, medicine and energy, where possible.
For example, Singapore’s focus on food resilience may see vegetables sourced from local producers that could be more expensive since these are produced in land-scarce Singapore, using advanced vertical farming technology.
Companies will have to weigh trade-offs between the costs of contingency planning versus the costs of disruption.
Ships and boats are seen at the entrance of Suez Canal, which was blocked by stranded container ship Ever Given that ran aground, Egypt March 28, 2021. REUTERS/Mohamed Abd El Ghany
If disruptions are rare like black swan events, then it does not make sense to pay for the extra costs of risk mitigation. If, however, we expect to see some form of disruption regularly, then it would make commercial sense to pay for the extra costs of back-up plans.
CHANGING GLOBAL SUPPLY CHAIN STRUCTURES
Overall, an incident like what happened at the Suez Canal would likely not cause major changes to supply chains.
However, the global supply chain landscape has been changing and adapting, reshaped by new emerging markets, trade tariffs, impact of technologies such as automation and e-commerce, and most recently, COVID-19 disruptions.
We are more likely to see a portfolio approach rather than a one-size-fits-all approach, with a business mix that is spread across different customers and different countries.
A handout picture released by the Suez Canal Authority on Mar 25, 2021 shows Egyptian tug boats trying to free Taiwan-owned MV Ever Given (Evergreen), a 400m long and 59m wide vessel, lodged sideways and impeding all traffic across the waterway of Egypt's Suez Canal. Egypt's Suez Canal Authority said it was "temporarily suspending navigation" until refloating of the MV Ever Given ship was completed on one of the busiest maritime trade routes. Suez CANAL / AFP
Companies may feel that with certain markets, products and trade routes, diversifying is key, whereas in less risky markets or more stable businesses, going with tried and trusted options is adequate and may be more cost-effective.
Companies need to understand the overall trend lines and invest based on a medium-and-long-term perspective, while preparing for the inevitable short-term operational fluctuations.
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Global supply chains will continue to become more varied, with regional supply chains interlinked globally as well.
The Suez Canal incident is one more reminder of the need for supply chain resilience in Singapore’s long-term planning.
Goh Puay Guan is an associate professor in the Analytics & Operations Department at the National University of Singapore (NUS) Business School. He is also the Academic Director of the NUS MSc in Industry 4.0 programme. The opinions expressed are those of the writer and do not represent the views and opinions of NUS.
Source: CNA/ml
