Suez Canal: Ever Given container ship finally freed

[Last Monetarist]

A bit of a crisis on the Canal.

https://www.reuters.com/article/us-egypt-suezcanal-ship-congestion/ships-carrying-commodities-stuck-after-vessel-grounding-in-suez-canal-idUSKBN2BG2E8

Dozens of ships carrying everything from oil to consumer goods have been delayed by the grounding of a vessel in the Suez Canal, and companies may have to re-route cargoes around Africa if the blockage extends beyond 24 hours, shipping sources said.

Efforts were underway on Wednesday to refloat the 400-metre, 224,000-tonne Ever Given, which got stranded on Tuesday morning after losing the ability to steer amid high winds and a dust storm.

Shipping sources say the grounding has disrupted regular voyages through the Canal, which is one of the world’s critical chokepoints and the quickest sea route between Asia and Europe.

Kpler said more than 20 oil tankers carrying crude and refined products were affected by the disruptions.

The Suez Canal is also a major route for LNG tankers bringing supplies and seven LNG vessels were stuck on Wednesday, Refinitiv ship tracking data showed.

Any delays can have a knock-on effect for both LNG and European gas prices.

There were also more than 13 container ships anchored around Suez with at least two others waiting in the Mediterranean, Refinitiv ship tracking data showed.

The world’s biggest container line A.P. Moller Maersk said seven of its vessels had been affected so far, adding that “four of them are stuck in the canal system while the rest are waiting to enter the passage”.

Shipping sources said if the delays extend ships could potentially start re-routing around Africa, which takes a week longer to navigate, if they were unable to sail through the Canal.

“The next 24 hours will be critical in determining the longer-term impact,” said Chris Evans, international supply chain specialist with professional services company Colliers.

“If there is a significant delay, then it is likely that the Cape of Good Hope will serve as an alternative route to keep things moving.”

Disruptions caused by the coronavirus and a surge in demand for retail goods by consumers have led to wider logistical bottlenecks around the world for container lines and supplies in recent months.

“With the Asia-Europe supply chain already stretched to the limit, the Suez Canal blockage comes at a particularly unhelpful time,” said Greg Knowler with IHS Markit’s Journal of Commerce.

“Container shipping lines have deployed every available vessel to serve heavy demand from European and UK importers, with congestion delaying the handling of inbound cargo.”

 

[MenInG]

Absolutely amazing!

 

[sweep_shot]

This is shocking. This should've never happened.

 

[Napa]

Absolutely amazing!

Seems like they will have to send in some tugs to pull it on one side and straighten it. I hope they have powerful enough tugs available.

 

[Last Monetarist]

https://www.reuters.com/article/us-egypt-suezcanal-ship/low-tide-slows-work-to-clear-suez-ship-blockage-traffic-jam-builds-idUSKBN2BH0BA

Efforts to dislodge a 400-metre long container vessel that has choked traffic along the Suez Canal resumed at high tide on Thursday, with five tugs working to drag the vessel to deeper water, according to ship-tracking data.

The Ever Given vessel ran aground diagonally across the single-lane stretch of the southern canal on Tuesday morning after losing the ability to steer amid high winds and a dust storm, the Suez Canal Authority (SCA) said in a statement.

It is now blocking transit in both directions through one of the world’s busiest shipping channels for goods, oil, grain and other products linking Asia and Europe.

Marine services firm GAC issued a note to clients overnight saying efforts to free the vessel using tug boats continued, but that wind conditions and the sheer size of the vessel “were hindering the operation”.

Ship-tracking software shows five tugs surrounding the Ever Given and three more heading towards it. The ship’s GPS signal shows only minor changes to its position over the past 24 hours, however.

Several dozen vessels, including other large container ships, tankers carrying oil and gas, and bulk vessels hauling grain have backed up at either end of the canal to create one of the worst shipping jams seen for years.

Roughly 30% of the world’s shipping container volume transits through the 193 km (120 miles) Suez Canal daily, and about 12% of total global trade of all goods.

Shipping experts say that if the blockage is not likely to be cleared within the next 24-48 hours, some shipping firms may be forced to re-route vessels around the southern tip of Africa, which would add roughly a week to the journey.

But the chairman of the Suez Canal Authority told media that despite the blockage some cargo was able to move south and that efforts to dislodge Ever given would continue.

 

[Last Monetarist]

 

[gani999]

The thing seems to have run aground. They'll need more than a few tugs to straighten it out.

That's one incompetent helmsman, in my opinion. Dust storms are a common occurrence around the Suez, and well trained helmsmen usually don't have a problem dealing with them.

 

[Last Monetarist]

They are fearing they'll have to unload the containers to get the ship afloat again. That process might take a couple of weeks, crippling traffic flows along the canal.

I don't know if the grounding of the ship is attributable in part to it occurring in a relatively newer stretch of the canal, which was only opened in 2015 after a major expansion to accommodate larger vessels along the route.

 

[OMB]

Suez Canal: Owner of cargo ship blocking waterway apologises


The Japanese owner of the giant cargo ship that has been blocking Egypt's Suez Canal since Tuesday has apologised for the disruption to global trade.

Shoei Kisen Kaisha said shifting the Ever Given was proving "extremely difficult", but that it was "working hard to resolve the situation".

The 400m-long (1,300ft) vessel became wedged across the canal after being blown off course by high winds.

At least 150 ships are now waiting to pass through the vital waterway.

About 12% of global trade passes through the 193km-long (120-mile) canal, which connects the Mediterranean to the Red Sea and provides the shortest sea link between Asia and Europe.

A flotilla of eight tug boats resumed efforts to dislodge the Ever Given at high tide on Thursday morning after stopping overnight, Egyptian officials said.

The head of a specialist salvage company assisting the operation warned that it could take weeks to move the boat and that containers might have to be lifted off to lighten its load.

https://www.bbc.com/news/world-middle-east-56522178

 

[Last Monetarist]

https://www.theguardian.com/world/2021/mar/25/suez-canal-blocked-ship-ever-given-stuck

Salvage teams from the Netherlands and Japan have been enlisted to redraw plans to free a giant container ship blocking the Suez canal after nearly three days of unsuccessful efforts.

Taiwan’s Evergreen Marine Corp, which leased the vessel, said the Dutch firm Smit Salvage and Japan’s Nippon Salvage had been appointed by the ship’s owner and would work alongside its captain and the Suez Canal Authority (SCA) on a plan to refloat the ship and resume traffic on one of the world’s key trade routes.

“Evergreen Line will continue to coordinate with the shipowner and Suez Canal Authority to deal with the situation with the utmost urgency, ensuring the resumption of the voyage as soon as possible and to mitigate the effects of the incident,” Evergreen said.

Efforts to refloat the 220,000-ton, 400-metre-long Ever Given resumed on Thursday after a brief overnight suspension, amid fears the operation could take weeks if the vessel needs to be unloaded.

The SCA said on Thursday it had suspended traffic temporarily while eight tugs and at least two dredgers worked to free it. Thirteen ships had sailed south along the canal on Wednesday and are waiting in lakes until the Ever Given is released.

At least 150 in total have been delayed by the blockage, the canal service provider Leth Agencies said, including ships near Port Said on the Mediterranean Sea and Port Suez on the Red Sea.

The SCA chairman, Osama Rabie, said: “Once we get this boat out then that’s it, things will go back to normal. God willing, we’ll be done today.”

However, Peter Berdowski, CEO of Boskalis, a specialist dredging company that has sent a crew to the scene, said data so far suggested “it is not really possible to pull it loose” and that the ship may need to be unloaded. “We can’t exclude it might take weeks, depending on the situation,” Berdowski told Dutch television.

He said the ship’s bow and stern had been lifted up against either side of the canal. “It’s like an enormous beached whale. It’s an enormous weight on the sand. We might have to work with a combination of reducing the weight by removing containers, oil and water from the ship, tugboats and dredging of sand.”

Peter Sands, chief shipping analyst at the shipowners association Bimco, said companies were still counting on the canal reopening soon, “but they are slowly moving to the second contingency plan where this will drag on for another four or five days, and they fear it could go on even longer”.

In that case some would redirect vessels on their way to the canal to alternative routes that would be costlier in terms of time and fuel.

Industry experts said a flood of insurance claims was likely, covering the vast amounts of cargo that have been held up. In addition to the economic implications, security experts said idling ships in the Red Sea could become targets, after a series of attacks against shipping in the Middle East amid tensions between Iran and the US.

The Ever Given, a Panama-flagged and Taiwan-operated ship, ran aground on Tuesday morning. The SCA said the ship lost the ability to steer amid high winds and a dust storm.

Dredgers have been clearing sand and mud from around the vessel while tugboats and the Ever Given’s own winches try to shift it, a spokesperson for Bernhard Schulte Shipmanagement, the technical manager for the Ever Given, said on Wednesday.

GAC, a Dubai-based marine services company, said on Wednesday that the vessel had been partially refloated and was now resting alongside the canal bank. “Convoys and traffic are expected to resume as soon as vessel is towed to another position,” it said.

Ship-tracking software shows there have been minor changes to the Ever Given’s position over the past 24 hours. Cargo ships trapped behind the Ever Given will be reversed south back to Port Suez to free the channel. Authorities hope to do the same with the Ever Given when they can free it.

Ranjith Raja, an analyst with the financial services data firm Refinitiv, said that even once the ship was freed the delay would have a flow-on effect across the shipping industry.

“We have to keep in mind the number of transits the canal can handle is limited to the tides in the canal … the number of pilots they have in order to guide the vessels on either side and the number of ships limited in the convoy being taken through. They can increase these, but there is always going to be a ripple effect that’ll keep growing day by day.”

Bernhard Schulte denied early reports that the vessel had lost power, saying: “Initial investigations rule out any mechanical or engine failure as a cause of the grounding.”

The ship had two pilots from Egypt’s canal authority onboard to guide it when the grounding happened at about 7.45am on Tuesday, the company said. It said all 25 crew were safe and there had been no reports of injuries or pollution.

Evergreen Marine Corp said the Ever Given had been overcome by strong winds as it entered the canal from the Red Sea. An Egyptian official who spoke to the Associated Press on condition of anonymity similarly blamed strong wind.

Egyptian forecasters said high winds and a sandstorm plagued the area on Tuesday, with gusts of up to 30mph.

The Ever Given, built in 2018, is among the largest cargo ships in the world. It can carry 20,000 containers. It had been at ports in China and was heading towards Rotterdam in the Netherlands.

The Suez canal, opened in 1869, provides a crucial link for oil, natural gas and cargo. It also remains one of Egypt’s top foreign currency earners. In 2015 the government completed a major expansion of the canal, allowing it to accommodate the world’s largest vessels. The Ever Given ran aground south of that new portion of the canal.

 

[Last Monetarist]

https://www.reuters.com/article/us-egypt-suezcanal-ship/suez-canal-ramps-up-efforts-to-end-blockage-u-s-watching-energy-market-impact-idUSKBN2BI0GZ?il=0

The Suez Canal stepped up efforts on Friday to free a stuck mega vessel, after an earlier attempt failed to end a blockage that has lifted shipping rates for fuel tankers and scrambled global supply chains for everything from grains to baby clothes.

In Washington, the White House said the Biden administration was seeing the impact of the incident on energy markets and would respond to the situation if required.

Shipping rates for oil product tankers have nearly doubled after the 400-metre (430-yard) long Ever Given ran aground in the vital trade waterway on Tuesday due to strong wind.

Efforts to free it may take weeks and be complicated by unstable weather, threatening costly delays for companies already dealing with COVID-19 restrictions.

All its 25 crew members, who have remained on board, were safe, in good health and spirits, Bernhard Schulte Shipmanagement (BSM), the Ever Given’s technical manager said.

The Dutch rescue team had confirmed that two additional tugs would arrive on March 28 to help dislodge the ship after an attempt to re-float it on Friday failed, BSM said.

“There have been no reports of pollution or cargo damage and initial investigations rule out any mechanical or engine failure as a cause of the grounding,” a BSM statement said.

The Suez Canal Authority (SCA) said efforts to free the ship by tug would resume as soon as dredging operations at its bow to remove 20,000 cubic metres of sand are complete.

“In addition to the dredgers already on site a specialised suction dredger is now with the vessel and will shortly begin work. This dredger can shift 2,000 cubic metres of material every hour,” it said.

The SCA said it welcomed a U.S. offer to help. Turkey also said it can send a vessel to the canal, amid a push by Ankara to repair ties with Egypt after years of animosity.

The suspension of traffic along the channel linking Europe and Asia has deepened problems for shipping lines already facing coronavirus-related disruption in supplying retail goods to consumers.

The blockage could cost global trade $6 billion to $10 billion a week, a study by German insurer Allianz showed on Friday.

Ratings agency Moody’s expects Europe’s manufacturing and car parts suppliers to be most affected because they operate “just-in-time” supply chains. “Even if the situation is resolved within the next 48 hours, port congestion and further delays to an already constrained supply chain is inevitable,” it said.

About two dozen ships could be seen from the shores of Port Said on Friday morning, according to a Reuters witness.

Oil prices rose over 3% on Friday as more than 30 oil tankers have been waiting on either side of the canal since Tuesday, shipping data on Refinitiv showed.

However, the delays come at a time of low seasonal demand for crude oil and liquefied natural gas (LNG), which will likely mitigate the impact on prices, analysts said.

Data intelligence firm Kpler said 10 crude oil tankers were awaiting entry to the canal. About 4 million barrels of mostly Kazakh CPC Blend and some Russian Urals were waiting along with tankers carrying Libyan, Azeri and some North Sea crude oil for Asian refiners, traders said.

Egypt’s SUMED pipeline operator quickly approached crude traders to see whether they wanted to book space in the system but so far traders prefer to wait to avoid high additional costs.

Analysts expect a greater price impact on smaller tankers carrying oil products, like naphtha and fuel oil, for export from Europe to Asia, if the canal remains shut for weeks.

“Around 20% of Asia’s naphtha is supplied by the Mediterranean and Black Sea via the Suez Canal,” said Sri Paravaikkarasu, director for Asia oil at FGE, adding that re-routing ships around the Cape of Good Hope could add about two weeks and extra fuel costs to the voyage.

The blockage is weighing on the already weak Asian gasoil, or diesel, market. More than 60% of Asian exports to the west flowed via the choked Canal in 2020, according to FGE.

“Aframax and Suezmax rates in the Mediterranean have also reacted first as the market starts to price in fewer vessels being available in the region,” shipbroker Braemar ACM Shipbroking said.

At least four Long-Range 2 tankers that might have been headed towards Suez from the Atlantic basin are now likely to be evaluating a passage around the Cape of Good Hope, Braemar ACM said. Each LR-2 tanker can carry around 75,000 tonnes of oil.

The cost of shipping clean products, such as gasoline and diesel, from the Russian port of Tuapse on the Black Sea to southern France jumped 73% over the last three days to $2.58 a barrel on March 25, according to Refinitiv Eikon data.

The shipping index benchmark for LR2 vessels from the Middle East to Japan, known as TC1, has climbed by a third since last week to 137.5 worldscale points, said Anoop Jayaraj, clean tanker broker at Fearnleys Singapore. Worldscale is an industry tool used to calculate freight rates.

On the crude side, traders have had to pay 10-20% more for replacement tankers but market freight rates have not yet risen as charterers are not ready to commit to higher levels in case the container is freed this weekend, shipbrokers said.

 

[Last Monetarist]

 

[WhenSultansBowled]

Last night I paid 1,17€/l for petrol (95) at the cheapest gas station in my area.

It is so fishy... hopefully there will be a proper investigation and consequences...

 

[sweep_shot]

Suez Canal: Ships stuck in 'traffic jam' as salvage efforts continue

The blockage of Egypt's Suez canal by a giant container ship is causing a "traffic jam" in the Red Sea, according to a merchant seaman on a nearby ship.

Joe Reynolds, chief engineer of the Maersk Ohio, told the BBC the number of vessels waiting at the canal's southern entrance was "growing exponentially".

"It's going to affect shipping schedules around the world," he warned.

Tugboats and dredgers are trying to dislodge the Ever Given, which is wedged diagonally across the waterway.

The 400m-long (1,300ft), 200,000-tonne vessel ran aground on Tuesday morning amid high winds and a sandstorm that affected visibility.

Specialist salvage companies have been brought in to help refloat the ship, and an adviser to Egypt's president has said he hopes the situation will be resolved within two to three days. But experts have said it could take weeks if the vessel's containers need to be removed.

About 12% of global trade passes through the 193km (120-mile) canal, which connects the Mediterranean Sea to the Red Sea and provides the shortest sea link between Asia and Europe.

An alternative route, around the Cape of Good Hope on the southern tip of Africa, can take two weeks longer.

Mr Reynolds told BBC Radio 4's Today programme that the Maersk Ohio, a US-flagged container ship that is 292m long and weighs 50,000 tonnes, was "stacked up" alongside dozens of other vessels near Port Suez.

"I think you can imagine there was a queue of ships waiting to go through to begin with, and now that queue has just grown exponentially," he said. "Standing outside, as you look, everywhere around you is ships."

He said there was still a lot of work to be done on board his ship, and that he and his fellow crewmembers had not yet had a chance to communicate with the other vessels.

"It's just a long waiting game. There's not a lot to see... We are ships sitting at anchor, just waiting as if you were in a traffic jam on the M5," he added, referring to a British motorway.

Source: https://www.bbc.com/news/world-middle-east-56538653.

 

[MenInG]

The entire crew of Ever Given, the container ship that is stuck in the Suez Canal since Tuesday blocking traffic in one of the world's busiest waterways, is Indian and is safe, said the company managing the container.

In a report, news agency The Associated Press said Bernhard Schulte Shipmanagement, the company that manages the Ever Given, said the ship's 25-member crew is safe and accounted for.

Apart from the Indian crew, the ship had two pilots from Egypt's canal authority aboard the vessel to guide it when the grounding happened around 7:45 am on Tuesday.

Shoei Kisen Kaisha, the company's owner, said, "All the crew came from India", adding that it is safe and the company is "trying to resolve the situation as soon as possible, but it proving to be extremely difficult".

On Tuesday, the 400 metre-long Ever Given got stuck diagonally across the Suez Canal, reportedly due to a major dust storm and strong winds.

According to a report in the BBC, at least 150 ships are currently waiting to pass through the Suez Canal.

The significance of the Suez Canal for international trade can be understood from the fact that nearly 12 per cent of global trade passes through this narrow canal connecting the Mediterranean Sea to the Red Sea.

The canal provides the shortest sea link between Asia and Europe. In case traffic in the canal isn't restored soon, expert say ship operators will have little option other than to take the alternative route that involves travelling around the cape of good Hope, Africa's southernmost tip, and then to Europe. This route would increase the travel time by approximately two weeks.

Peter Berdowski, CEO of Dutch company Boskalis, which is trying to free the Ever Given, said it was too early to say how long the job might take.

"We can't exclude it might take weeks, depending on the situation," Berdowski told the Dutch television programme "Nieuwsuur".

WHAT HAPPENED TO EVER GIVEN?

The Ever Given is a Panama-flagged ship that carries cargo between Asia and Europe. On Tuesday, it ran aground in the narrow, man-made Suez Canal dividing continental Africa from the Sinai Peninsula.

Since then, efforts to free the ship using dredgers, digging and the aid of high tides have yet to push the container vessel aside - affecting billions of dollars' worth of cargo.

In a sign of the global turmoil that the blockage has caused, the ship's Japanese owner even offered a written apology on Thursday for the incident.

"We are determined to keep on working hard to resolve this situation as soon as possible," Shoei Kisen Kaisha Ltd. said. "We would like to apologise to all parties affected by this incident, including the ships travelling and planning to travel through Suez Canal."

Authorities began work again to free the vessel Thursday morning after halting for the night, an Egyptian canal authority official said.

The official, who spoke on condition of anonymity as he wasn't authorized to speak to journalists, said workers hoped to avoid offloading containers from the vessel as it would be a days-long effort to do so that could extend the closure.

So far, dredgers have tried to clear silt around the massive ship. Tug boats nudged the vessel alongside it, trying to gain momentum.

From the shore, at least one backhoe dug into the canal's sandy banks, suggesting the bow of the ship had plowed into it.

(With inputs from agencies)

https://www.indiatoday.in/india/sto...cking-suez-canal-is-indian-1783659-2021-03-25

 

[Varun]

That's one incompetent helmsman, in my opinion. Dust storms are a common occurrence around the Suez, and well trained helmsmen usually don't have a problem dealing with them.

The ship blocking Suez Canal has 100% Indian Crew. It's reported that after heavy drinking one of the guys on board said "aaj ship tera bhai chalayega".

 

[gani999]

The ship blocking Suez Canal has 100% Indian Crew. It's reported that after heavy drinking one of the guys on board said "aaj ship tera bhai chalayega".

Indians account for a sizeable proportion of the workers in the shipping industry. As for quality and competence, in India like everywhere else you'll get what you pay for. If Evergreen Lines decides to hire cheapos and blockheads to save a few dollars, they should be ready to face the consequences.

Where did you get the news that the crew was drunk? Any source for that?

 

[Varun]

Indians account for a sizeable proportion of the workers in the shipping industry. As for quality and competence, in India like everywhere else you'll get what you pay for. If Evergreen Lines decides to hire cheapos and blockheads to save a few dollars, they should be ready to face the consequences.

Where did you get the news that the crew was drunk? Any source for that?

Arey I was cracking a joke.

 

[Last Monetarist]

https://www.reuters.com/article/us-egypt-suezcanal-ship/salvager-hopes-to-free-ship-blocking-suez-canal-by-start-of-next-week-idUSKBN2BJ096

A giant container ship grounded in the Suez Canal could be freed by the start of next week if heavier tugboats, dredging and a high tide succeed in dislodging it, a Dutch firm working to free the vessel said. The 400-metre (430-yard) long Ever Given became wedged diagonally across a southern section of the canal amid high winds early on Tuesday, disrupting global shipping by blocking one of the world’s busiest waterways.

About 15% of world shipping traffic passes through the canal, and dozens of vessels are waiting in the waterway and around its northern and southern entrances for the blockage to be cleared.

Dredgers had removed some 20,000 tonnes of sand from around its bow by Friday, but tugging operations to free the ship were suspended overnight.

“We aim to get it done after the weekend, but everything will have to work out exactly right for that,” Peter Berdowski, chief executive of Boskalis, told Dutch TV programme Nieuwsuur late on Friday.

Boskalis owns Smit Salvage, which was brought in this week to help with efforts by the Suez Canal Authority (SCA) to dislodge the ship.

“The bow is really stuck in the sandy clay, but the stern has not been pushed totally into the clay, which is positive. We can try to use that as leverage to pull it loose,” Berdowski said.

“Heavy tugboats, with a combined capacity of 400 tonnes, will arrive this weekend. We hope that a combination of the tugboats, dredging of sand at the bow and a high tide will enable us to get the ship loose at the beginning of next week.”

Shipping rates for oil product tankers nearly doubled after the ship became stranded, and the blockage has scrambled global supply chains, threatening costly delays for companies already dealing with COVID-19 restrictions.

If it drags on, shippers may decide to reroute around the Cape of Good Hope, adding about two weeks to journeys and extra fuel costs.

Three shipping agents said on Saturday that none of the ships waiting at the canal’s entrances had yet requested to be rerouted.

Berdowski said a land crane would be brought in at the weekend which could lighten the Ever Given’s load by offloading containers, though experts have warned that such a process could be complex and lengthy.

“If we don’t succeed in getting it loose next week, we will have to remove some 600 containers from the bow to reduce the weight,” he said.

“That will set us back days at least, because where to leave all those containers will be quite a puzzle.”

 

[Robert]

Got to be the costliest prang in terms of world economy in the history of shipping. Oil and medicine and goods shortages will follow soon.

 

[Varun]

Got to be the costliest prang in terms of world economy in the history of shipping. Oil and medicine and goods shortages will follow soon.

Although a far less globalized world, the 8-year closure of the Suez Canal from 1967 to 1975 would certainly have been 'costlier'.

 

[OMB]

Got to be the costliest prang in terms of world economy in the history of shipping. Oil and medicine and goods shortages will follow soon.

Yes it is affecting some deliveries that were scheduled in my company. What an irritant.

 

[sweep_shot]

Suez Canal: Fresh effort to refloat wedged container ship

A fresh effort is under way to refloat a giant container ship blocking Egypt's Suez Canal.

Canal authorities say 14 tugboats are trying to take advantage of Saturday's high tide and more will arrive on Sunday if the latest attempt fails.

The Ever Given became wedged in the canal - one of the world's busiest trade channels - on Tuesday.

More than 300 ships are stuck on either side of the blockage. Some have had to reroute around Africa.

By late Friday, dredgers had moved about 20,000 tonnes of sand from around the Ever Given's bow, which was stuck deep into the canal's bank.

The chairman of the Suez Canal Authority (SCA), Osama Rabie, told a news conference on Saturday that 9,000 tonnes of ballast water - which is stored in tanks to stabilise the ship - had been removed to help lighten the vessel.

He said the stern had begun to move on Friday night, and that the rudder and propeller had started working again. Strong tides and winds had made freeing the ship more difficult, he added.

Mr Rabie could not say how soon the ship might be refloated but said the SCA would "work around the clock" to get other ships through once the Ever Given was free.

Initial reports said the 400m-long (1,300ft), 200,000-tonne vessel ran aground in high winds and a sandstorm that affected visibility.

However, Mr Rabie said weather conditions were "not the main reasons" for the ship's grounding.

"There may have been technical or human errors," he told reporters, without giving details. "All of these factors will become apparent in the investigation."

The Ever Given is operated by the Taiwanese firm Evergreen Marine and owned by Shoei Kisen of Japan.

Yukito Higaki, president of Shoei Kisen, said on Friday that the ship did not appear to be damaged.

"The ship is not taking water. Once it refloats, it should be able to operate," he said.

Source: https://www.bbc.com/news/world-middle-east-56550350.

 

[gazza619]

Does this present a chance for the world to look at a new and quicker way from east to west? I am talking about Gwadar/Iran/Turkey route.

 

[Slog]

Does this present a chance for the world to look at a new and quicker way from east to west? I am talking about Gwadar/Iran/Turkey route.

So a land route?

 

[gazza619]

So a land route?

Water route. Apparently it is possible if Iran sanctions are lifted I think.

 

[Last Monetarist]

Water route. Apparently it is possible if Iran sanctions are lifted I think.

Can you elaborate on the route? It's too large an area to build artificial channels from Iran to Turkey, assuming an alternative outlet into the Mediterranean.

 

[IMMY69]

Does this present a chance for the world to look at a new and quicker way from east to west? I am talking about Gwadar/Iran/Turkey route.

Mate as someone who was in shipping for twenty years all I can say is "huh?"

 

[IMMY69]

The draft of supramax is 12.5m and a cape size is around 18/18.5m..
That is the level of the shop below the waterline. So the depth of a river/channel would have to be at least 13m to handle a supramax and 20m to handle a capesize.

 

[IMMY69]

Oh and that's basis sea water where the water is more dense.
If it was a fresh water channel then the available draft would have to be substantially more.

 

[hoshiarpurexpress]

The ship blocking Suez Canal has 100% Indian Crew. It's reported that after heavy drinking one of the guys on board said "aaj ship tera bhai chalayega".

lol.. ��. This is possible.

 

[mazkhan]

Initial reports said the 400m-long (1,300ft), 200,000-tonne vessel ran aground due to high winds and a sandstorm that affected visibility.

However, Mr Rabie said weather conditions were "not the main reasons" for the ship's grounding.

"There may have been technical or human errors," he told reporters, without giving details. "All of these factors will become apparent in the investigation."

From bbc

 

[Bhaag Viru Bhaag]

Absolutely amazing!

I can already visualise a Hollywood movie named "Evergreen" made on this.

 

[OMB]

I hear from one of our clearing agents that this will hopefully be cleared on Monday (tomorrow).

 

[Usman]

I find it astonishing that in 2021 a ship can block a major shipping lane and all the mechanical and engineering expertise in the World cannot find a quick and easy way to resolve the situation

It's the sort of thing you'd expect to have happened 100 years ago!

 

[Last Monetarist]

https://www.reuters.com/article/us-egypt-suezcanal-ship/tugs-dredgers-still-struggle-to-free-ship-blocking-suez-canal-idUSKBN2BK08V

Suez Canal salvage teams were alternating between dredging and tugging on Sunday to dislodge a massive container ship blocking the busy waterway, while two sources said efforts had been complicated by rock under the ship’s bow. Dredgers working to dislodge the stranded vessel have so far shifted 27,000 cubic metres of sand, to a depth of 18 metres, and efforts would continue around the clock according to wind conditions and tides, the Suez Canal Authority (SCA) said in a statement.

Egypt’s President Abdel Fattah al-Sisi has ordered preparations for the possible removal of some of the ship’s 18,300 containers, SCA Chairman Osama Rabie told Egypt’s Extra News.

Any operation to lighten the ship’s load would not start before Monday, an SCA source said.

The 400-metre (430-yard) long Ever Given became jammed diagonally across a southern section of the canal in high winds more than five days ago, halting shipping traffic in one of the world’s busiest waterways.

At least 369 boats are waiting to transit the canal, Rabie said, including dozens of container ships, bulk carriers, oil tankers and liquefied natural gas (LNG) or liquefied petroleum gas (LPG) vessels.

Shippers affected by the blockage may be offered discounts, Rabie said, adding that he believed investigations would show the canal was not responsible for the Ever Given running aground.

Rescue workers from the SCA and a team from Dutch firm Smit Salvage have been weighing whether some cargo will need to be removed by crane in order to refloat the Ever Given, one of the world’s biggest container ships.

Experts have warned that such a process could be complex and lengthy. Rabie said he hoped it would not be necessary, but that Egypt would take up offers of international assistance if it did switch to that strategy. “There are positive indicators from yesterday and the day before yesterday,” Rabie told Egyptian state TV.

“The rudder was not moving and it is now moving, the propeller is working now, there was no water underneath the bow, and now there is water under it, and yesterday there was a 4-metre deviation in the bow and the stern.”

However, two SCA sources told Reuters that a mass of rock had been found at the bow of the ship, complicating salvage efforts.

“We’re dividing the day into two halves, 12 hours for dredgers and 12 hours for tugs, because not all times are suitable for tugs due to the tide,” said Rabie, adding that 14 tug boats were being deployed.

About 15% of world shipping traffic transits the Suez Canal, which is a key source of foreign currency revenues for Egypt. The current stoppage is costing the canal $14-15 million daily.

Shipping rates for oil product tankers nearly doubled after the ship became stranded, and the blockage has disrupted global supply chains, threatening costly delays for companies already dealing with COVID-19 restrictions.

If the blockage drags on, shippers may decide to reroute their cargoes around the Cape of Good Hope, adding about two weeks to journeys and extra fuel costs.

 

[Varun]

I find it astonishing that in 2021 a ship can block a major shipping lane and all the mechanical and engineering expertise in the World cannot find a quick and easy way to resolve the situation

It's the sort of thing you'd expect to have happened 100 years ago!

Ever saw what happened in 2020 and how the healthcare and pharmaceutical expertise in the world ground to a standstill?

Stuff happens.

 

[Usman]

Ever saw what happened in 2020 and how the healthcare and pharmaceutical expertise in the world ground to a standstill?

Stuff happens.

True! Although the discovery of multiple vaccines within 9-12 months and rapid deployment is a massive feat. Plus dealing with a pandemic that effects every person on earth in some form is a much bigger challenge than moving a ship.

I think in another 100 years time, people will look back and say, do you remember those primitive humans who took years to get over a virus that modern day technology can deal with in days

 

[GenericBrand]

You'd think they would deploy more than the single tractor.

 

[Slog]

Water route. Apparently it is possible if Iran sanctions are lifted I think.

Huh what? There’s no water route possible Unless you are suggesting taking a trillion plus dollar undertaking to create an artificial canal

 

[OMB]

I hear from one of our clearing agents that this will hopefully be cleared on Monday (tomorrow).

It is cleared now. All those ships who had left Suez canal to reroute via cape of good hope will be scrambling back to queue up again in the canal.

 

[Last Monetarist]

https://www.reuters.com/article/us-egypt-suezcanal-ship/suez-canal-authority-says-stranded-ship-partially-refloated-idUSKBN2BL0A3

A massive container ship blocking Egypt’s Suez Canal for nearly a week has been partially refloated, the Suez Canal Authority (SCA) said, raising hopes the busy waterway will soon be reopened. The 400-metre (430-yard) long Ever Given became jammed diagonally across a southern section of the canal in high winds early last Tuesday, halting shipping traffic on the shortest shipping route between Europe and Asia.

After further dredging and excavation over the weekend, efforts by rescue workers from the SCA and a team from Dutch firm Smit Salvage worked to free the ship using tug boats in the early hours of Monday, two marine and shipping sources said.

The SCA said Ever Given has been straightened in the canal and further tugging operations would resume once the tide rises later on Monday. Marine traffic through the canal will resume once the ship is directed to the Great Lakes area, a wider section of the canal, it added. Video posted on social media appeared to show the ship had swung around, opening space in the canal. Other footage, which could not be immediately verified by Reuters, included cheering and ships’ horns sounding in celebration.

At least 369 vessels were waiting to transit the canal, including dozens of container ships, bulk carriers, oil tankers and liquefied natural gas (LNG) or liquefied petroleum gas (LPG) vessels, SCA Chairman Osama Rabie said.

The ship’s technical manager Bernhard Schulte Shipmanagement (BSM) did not immediately respond to a request to comment. The Suez Canal salvage teams had intensified excavation and dredging on Sunday and were hoping a high tide would help them dislodge the ship.

Crude oil prices fell after news the ship had been re-floated, with Brent crude down by $1 per barrel to $63.67. Shares of Taiwan-listed Evergreen Marine Corp - the vessel’s lessor - rose 3.3%.

About 15% of world shipping traffic transits the Suez Canal, which is a key source of foreign currency revenue for Egypt. The current stoppage is costing the canal $14-$15 million a day.

Shipping rates for oil product tankers nearly doubled after the ship became stranded, and the blockage has disrupted global supply chains, threatening costly delays for companies already dealing with COVID-19 restrictions.

Some shippers had decided to reroute their cargoes around the Cape of Good Hope, adding about two weeks to journeys and extra fuel costs.

A note from A.P. Moeller Maersk seen by Reuters said it had so far redirected 15 vessels around the Cape after calculating that the journey would be equal to the current delay of sailing to Suez and queuing.

The SCA has said it can accelerate convoys through the canal once the Ever Given is freed.

 

[Robert]

I find it astonishing that in 2021 a ship can block a major shipping lane and all the mechanical and engineering expertise in the World cannot find a quick and easy way to resolve the situation

It's the sort of thing you'd expect to have happened 100 years ago!

Ships were not that big and heavy in 1921. The Suez Canal was not built for such massive vessels.

 

[Gilly]

The ship has been freed.

 

[MenInG]

A giant container ship that blocked the Suez Canal for nearly a week has finally been freed after a mammoth salvage operation.

Tug boats honked their horns in celebration as the 400m-long (1,300ft) Ever Given was dislodged on Monday.

Traffic is set to resume in both directions through the canal at 19:00 local time (17:00 GMT), according to local authorities.

Hundreds of ships are waiting to pass through.

Suez, which connects the Mediterranean to the Red Sea through Egypt, is one of the world's busiest trade routes.

Peter Berdowski, CEO of Dutch salvage company Boskalis, said the Ever Given had been refloated at 15:05 (13:05 GMT) on Monday, "thereby making free passage through the Suez Canal possible again".

The vessel was being towed for safety checks to Great Bitter Lake, which sits between two sections of the canal to the north of where the ship got stuck.

Egyptian President Abdul Fattah al-Sisi thanked Egyptians for their efforts in "ending the crisis" in the canal.

https://www.bbc.com/news/world-middle-east-56567985

 

[sweep_shot]

Suez Canal reopens after giant stranded ship is freed

Traffic has resumed in Egypt's Suez Canal after a stranded container ship blocking it for nearly a week was finally freed by salvage crews.

Tug boats honked their horns in celebration as the 400m-long (1,300ft) Ever Given was dislodged on Monday with the help of dredgers.

Hundreds of ships are waiting to pass through the canal which links the Mediterranean to the Red Sea.

It is one of the world's busiest trade routes.

Peter Berdowski, CEO of Dutch salvage company Boskalis, said the Ever Given had been refloated at 15:05 (13:05 GMT) on Monday, "thereby making free passage through the Suez Canal possible again".

Egyptian officials say the backlog of ships waiting to transit through should be cleared in around three days, but experts believe the knock-on effect on global shipping could take weeks or even months to resolve.

Source: https://www.bbc.com/news/world-middle-east-56567985.

 

[OMB]

In Ship's Refloating At Suez Canal, Note For Indian Crew's "Hard Work"

MV Ever Given, one of the world's largest container ships, will now head to the Great Bitter Lake in Egypt for a full inspection.

Up to 25 Indians remain on the MV Ever Given, the container ship that had got stuck in the Suez Channel from March 23 till yesterday, the ship's authorities have said. The crew has been aiding the efforts to free it, Bernhard Schulte Shipmanagement (BSM) informed in a media statement. The German company is responsible for the technical management of the vessel owned by the Japanese firm Shoei Kisen Kaisha.

Confirming the Ever Given's re-floating at around 3 pm local time yesterday, BSM expressed its deepest gratitude to all parties involved in the emergency response, including the Suez Canal Authority, SMIT Salvage, and the crew on board.

"A crew of 25 Indian nationals remain aboard the vessel. They are safe, in good health, and have been working closely with all parties involved to re-float the vessel. Their hard work and tireless professionalism are greatly appreciated," the media statement said.

The vessel, one of the world's largest container ships, will now head to the Great Bitter Lake in Egypt for a full inspection.

It ran aground in the Suez Canal on March 23 enroute from Malaysia to Rotterdam, Netherlands. Initial investigations zeroed-in on strong wind as the cause for the accident.

https://www.ndtv.com/india-news/re-floated-suez-vessel-ever-givens-managers-say-25-hardworking-indians-safe-healthy-2402009

 

[MenInG]

 

[Suleiman]

View attachment 108265

Even this would be a decent plot compared to the hot garbage he’s in recent times.

A good actor, second best out of the big Khan dynasty of 90-2010s and was in some good films till about 2010 when he slowly started favoring cheap Bollywood films with actresses 20-30 years younger.

 

[Robert]

They have done really well to get that big beast free and the canal open again.

 

[Giannis]

Water route. Apparently it is possible if Iran sanctions are lifted I think.

Can you elaborate on the route? It's too large an area to build artificial channels from Iran to Turkey, assuming an alternative outlet into the Mediterranean.

Huh what? There’s no water route possible Unless you are suggesting taking a trillion plus dollar undertaking to create an artificial canal

It's called Iranrud, look it up.

 

[OMB]

Why the World’s Container Ships Grew So Big


As global trade has grown, shipping companies have steadily increased ship sizes — but the Suez Canal blockage showed that bigger is not always better.

The traffic jam at the Suez Canal will soon begin easing, but behemoth container ships like the one that blocked that crucial passageway for almost a week and caused headaches for shippers around the world aren’t going anywhere.

Global supply chains were already under pressure when the Ever Given, a ship longer than the Empire State Building and capable of carrying furnishings for 20,000 apartments, wedged itself between the banks of the Suez Canal last week. It was freed on Monday, but left behind “disruptions and backlogs in global shipping that could take weeks, possibly months, to unravel,” according to A.P. Moller-Maersk, the world’s largest shipping company.

The crisis was short, but it was also years in the making.

For decades, shipping lines have been making bigger and bigger vessels, driven by an expanding global appetite for electronics, clothes, toys and other goods. The growth in ship size, which sped up in recent years, often made economic sense: Bigger vessels are generally cheaper to build and operate on a per-container basis. But the largest ships can come with their own set of problems, not only for the canals and ports that have to handle them but for the companies that build them.

“They did what they thought was most efficient for themselves — make the ships big — and they didn’t pay much attention at all to the rest of the world,” said Marc Levinson, an economist and author of “Outside the Box,” a history of globalization. “But it turns out that these really big ships are not as efficient as the shipping lines had imagined.”

Despite the risks they pose, however, massive vessels still dominate global shipping. According to Alphaliner, a data firm, the global fleet of container ships includes 133 of the largest ship type — those that can carry 18,000 to 24,000 containers. Another 53 are on order.The world’s first commercially successful container trip took place in 1956 aboard a converted steamship, which transported a few dozen containers from New Jersey to Texas. The industry has grown steadily in the decades since, but as global trade accelerated in the 1980s, so did the growth of the shipping industry — and ship size.

In that decade, the average capacity of a container ship grew 28 percent, according to the International Transport Forum, a unit of the Organization for Economic Cooperation and Development. Container ship capacity grew an additional 36 percent in the 1990s. Then, in 2006, Maersk introduced the Emma Maersk, a massive vessel that could hold about 15,000 containers, almost 70 percent more than any other vessel.

“Instead of this pattern of small increases in capacity over time, all of a sudden we had a quantum leap, and that really set off an arms race,” Mr. Levinson said.

Today, the largest ships can hold as many as 24,000 containers — a standard 20-foot box can hold a pair of midsize sport utility vehicles or enough produce to fill one or two grocery store aisles.

The growth of the shipping industry and ship size has played a central role in creating the modern economy, helping to make China a manufacturing powerhouse and facilitating the rise of everything from e-commerce to retailers like Ikea and Amazon. To the container lines, building bigger made sense: Larger ships allowed them to squeeze out savings on construction, fuel and staffing.

“Ultra Large Container Vessels (U.L.C.V.) are extremely efficient when it is about transporting large quantities of goods around the globe,” Tim Seifert, a spokesman for Hapag-Lloyd, a large shipping company, said in a statement. “We also doubt that it would make shipping safer or more environmentally friendly if there would be more or less-efficient vessels on the oceans or in the canals.”

Maersk said it was premature to blame Ever Given’s size for what happened in the Suez. Ultra-large ships “have existed for many years and have sailed through the Suez Canal without issues,” Palle Brodsgaard Laursen, the company’s chief technical officer, said in a statement on Tuesday.

But the growth in ship size has come at a cost. It has effectively pitted port against port, canal against canal. To make way for bigger ships, for example, the Panama Canal expanded in 2016 at a cost of more than $5 billion.

That set off a race among ports along the East Coast of the United States to attract the larger ships coming through the canal. Several ports, including those in Baltimore, Miami and Norfolk, Va., began dredging projects to deepen their harbors. The Port Authority of New York and New Jersey spearheaded a $1.7 billion project to raise the Bayonne Bridge to accommodate mammoth ships laden with cargo from Asia and elsewhere.

The race to accommodate ever-larger ships also pushed ports and terminal operators to buy new equipment. This month, for example, the Port of Oakland erected three 1,600-ton cranes that would, in the words of one port executive, allow it to “receive the biggest ships.”

But while ports incurred costs for accommodating larger ships, they didn’t reap all of the benefits, according to Jan Tiedemann, a senior analyst at Alphaliner.

“The savings are almost exclusively on the side of the carrier, so there was an argument that the carriers have been in the driving seat and have just pushed through with this big tonnage, while terminal operators, ports and, in some cases, the taxpayer have footed the bill,” he said.

The shift to bigger ships also coincided with and contributed to industry consolidation that has both limited competition among shipping giants and made the world more vulnerable to supply disruptions. Buying and maintaining large vessels is expensive, and shippers that couldn’t afford those costs had to find ways to become bigger themselves. Some firms merged, and others joined alliances that allowed them to pool their ships to offer more frequent service.

Those trends aren’t necessarily all bad. The alliances allow shippers to offer expanded service and help keep costs low for customers. And the fact that bigger ships cut fuel costs has helped the industry make the case that it is doing its part to reduce planet-warming emissions.

But the argument for even bigger ships may finally be fading, even for container lines themselves — a concept known in economics as the law of diminishing returns.

For one, the benefits of building bigger tend to shrink with each successive round of growth, according to Olaf Merk, the lead author of a 2015 International Transport Forum report on very big ships. According to the report, the savings from moving to ships that can carry 19,000 containers were four to six times smaller than those realized by the previous expansion of ship size. And most of the savings came from more efficient ship engines than the size of the ship.

“There’s still economies of scale, but less and less as the ships become bigger,” Mr. Merk said.

The bigger vessels can also call on fewer ports and navigate through fewer tight waterways. They are also harder to fill, cost more to insure and pose a greater threat to supply chains when things go wrong, like Ever Given’s beaching in the Suez Canal. Giant ships are also designed for a world in which trade is growing rapidly, which is far from guaranteed these days given high geopolitical and economic tensions between the United States and China, Britain and the European Union, and other large trading partners.

https://www.nytimes.com/2021/03/30/business/economy/container-ships-suez-canal.html

 

[Firebat]

Investigation begins into how ship got stuck on Suez Canal

ISMAILIA, Egypt (Reuters) - Formal investigations into how the giant container ship Ever Given ran aground in the Suez Canal, shutting down shipping in the major global waterway for almost a week, begin on Wednesday, a canal official told Reuters.

Suez Canal Authority (SCA) Chairman Osama Rabie has suggested weather conditions, including high winds, and human error could have played a role in the grounding on March 23.

The investigation will include examining the seaworthiness of the ship and its captain’s actions to help determine the causes, Rabie advisor Captain Sayed Sheasha told Reuters.

The Ever Given’s captain was committed to fully complying with the probe, which will start on Wednesday, Sheasha said.

The six-day blockage threw global supply chains into disarray after the 400-metre-long (430-yard) ship became jammed diagonally across a southern section of the canal, the shortest shipping route between Europe and Asia.

The incident is expected to give rise to flurry of insurance claims, with Lloyd’s of London expecting a “large loss”, possibly amounting to $100 million or more, according to its chairman.

The Japanese owner of the Ever Given said it had not received any claims or lawsuits over the blockage.

Investigators had already boarded the ship, which is in a lake that separates two sections of the canal, on Tuesday, a canal source and a shipping agent said.

The SCA has scheduled accelerated shipping convoys to clear a backlog of more than 400 ships that built up at either end of the canal and along its course after the Ever Given became stranded.

It has said it hopes the queues can be cleared by the end of the week.

https://www.reuters.com/article/us-...ow-ship-got-stuck-on-suez-canal-idUSKBN2BN10B

 

[Firebat]

Suez canal ends shipping backlog: statement

CAIRO (Reuters) - Suez Canal Authority (SCA) said that all 422 ships stranded by the grounding of the giant container ship Ever Given passed through the canal by Saturday, ending the backlog caused by the blockage.

https://www.reuters.com/article/us-...ends-shipping-backlog-statement-idUSKBN2BQ0BW

 

[mazkhan]

Suez has a real threat with alliance of Saudi uae Israel in constructing the potential eilat route canal.

The city of neom , neom Bay, ships routed through to eilat Israel then Mediterranean linked with ports in Israel.

Could eventually make the suez defunct and world trade route in hands of zionists

 

[OMB]

Suez has a real threat with alliance of Saudi uae Israel in constructing the potential eilat route canal.

The city of neom , neom Bay, ships routed through to eilat Israel then Mediterranean linked with ports in Israel.

Could eventually make the suez defunct and world trade route in hands of zionists

yes Neom bay has some huge plans. have they published development of shipping route? So far it has been projected as tourism alternative to Sharm el sheikh rather than any economic one.

 

[King-Misbah]

There should be an investigation on the Indian crews competence. We all knew that they are not good with fighter jets but ships is a new.

 

[Last Monetarist]

yes Neom bay has some huge plans. have they published development of shipping route? So far it has been projected as tourism alternative to Sharm el sheikh rather than any economic one.

No, the shipping route through Eilat is unfeasible without the provision of a rail line connecting with the major ports in northern Israel. The port upgrades also require a lot of capital, at this stage it's only fanciful theory more than anything else.

The shipping industry would sooner require the Suez Canal to be upgraded than hanker for an alternative route.

 

[Last Monetarist]

https://www.reuters.com/article/us-egypt-suezcanal-ship/suez-canal-may-expand-southern-channel-chairman-says-idUSKBN2BT1KA?il=0

The Suez Canal Authority is considering expanding the southern section of the waterway where the container ship Ever Given became stranded, its chairman said on Tuesday.

It is also looking into procuring cranes that could potentially offload cargo at heights of up to 52 meters, Osama Rabie told Reuters in an interview.

“Our procedures are sound, we are just aiming to improve the service,” he said.

The 400-metre-long (1,310 ft) Ever Given became grounded diagonally across the southern section of the canal during high winds on March 23. It remained stuck for six days, preventing hundreds of ships from passing and significantly impacting global trade flows.

After it was dislodged, the ship was taken to a lake that separates two sections of the canal where the Suez Canal Authority (SCA) has been conducting investigations.

Rabie said data from the ship’s recorders had been removed and handed over to an investigation committee, and that the ship would travel on once the procedures were completed.

“We are talking about two or three more days, God willing. But we won’t take much time,” he said.

The committee investigating the grounding was made up of five or six members with law, maritime, salvage, and administration expertise, he said, adding that it had caused Egypt great damage.

“We used about 15 tug boats, for six days. We worked 24 hours a day. We used two dredgers. We used assistance launches,” Rabie said. “The canal was closed for six days. That alone caused great harm.”

The SCA has said that it will continue to take ships of the Ever Given’s size and is reinforcing its ability to deal with future problems.

“We will try to get two more tug boats, with pulling power of more than 200 tonnes - 250, 280, depending,” Rabie said.

The authority was also studying and planning a possible expansion of the southern part of the canal, the area where the Ever Given got stuck.

“If there is a 250-metre part that needs expansion, maybe we will make it 400 metres,” Rabie said.

 

[Last Monetarist]

https://www.reuters.com/article/us-egypt-suezcanal-shipping-containers/global-supply-lines-struggle-to-clear-container-backlog-after-suez-chaos-idUSKBN2BV241?il=0

A backlog of container ships carrying consumer goods has grown in some key strategic ports after a near week-long blockage in the Suez Canal, adding to ongoing disruptions to global trade, industry sources say. Dozens of container ships were stuck when the 400-metre-long (430-yard) Ever Given ran aground in the canal on March 23, with specialist rescue teams taking almost a week to free the vessel.

The suspension of sailings through the waterway left shipping companies - including container lines - with millions of dollars in extra costs, which were not covered by insurance.

“The blockage of the Suez Canal will increase the negative impact on global supply chains in the coming weeks, as the availability of empty equipment, particularly in Asia and Europe, will be affected,” Reiner Heiken, chief executive of U.S. headquartered Hellmann Worldwide Logistics, told Reuters.

Container shipping companies, carrying products ranging from mobile phones to designer goods, have been contending for months with disruptions caused by the coronavirus pandemic and a surge in demand for retail goods that led to wider logistical bottlenecks including in top consumer market the United States.

While some transporters of goods have turned to rail, that option has barely made a dent as about 90% of world trade is transported by sea.

European and U.S. retailers have warned about potential supply snags due to the impact from Suez.

Port officials in Europe’s leading gateways say the impact will be felt in coming days, adding to already stretched supply lines.

Barbara Janssens, with the Port of Antwerp, said the port and terminal operators were “already preparing for what’s ahead”.

“The impact on global supply chains is expected to last for several months. There is simply not enough spare capacity across the worldwide container ship fleet to help counter the worst effects of the Suez incident,” Janssens said.

Leon Willems, with the port of Rotterdam, said it expected its container traffic to be around 10% higher than normal every day in the coming weeks.

“Both the port and container terminals are doing everything they can to minimise disruptions,” Willems said.

Maersk, the world’s number 1 container line, said in a customer note that vessels held up in Suez would be delayed for a number of days before they reached U.S. East Coast ports.

In an unusual step, the company urged the ports “to take this opportunity to clear cargo from terminals which will allow them to operate more efficiently”.

The East Coast Port of Newark did not immediately respond to a request for comment.

A source at the southern U.S. port of Savannah said they expected to clear a backlog of ships in the coming days. While ports on the U.S. East Coast are more exposed to any disruptions in the Suez Canal, the surge in demand for retail goods has overwhelmed West Coast terminals in recent months.

Container ships face longer waiting and discharging times at West Coast ports than in many other ports around the world, analysis from logistics platform project44 showed.

Eugene Seroka, executive director of the Port of Los Angeles, said they were making progress whittling down the backlog, which could be cleared by the end of May or early June.

Mario Cordero, executive director of neighbouring Long Beach port, also expected their backlog to be reduced by summer.

“But for at least the next couple of months, we expect a continuing surge on the volume that we’re seeing.” Cordero said.

Analysts Sea-Intelligence expected a ripple effect in the coming weeks between Asia and Europe and disruption of container trade.

Hong Kong’s Transport and Housing Bureau said the government was monitoring the situation although the disruption had not had a significant impact on shipping operations between Europe and Hong Kong.

Transporters elsewhere have been turning to a rail links between China and Europe to get critical supplies through, although users stressed volumes were still small.

Journey times via the rail routes, which run from China through Kazakhstan or Mongolia to Russia and then on to freight centres across Europe, typically take between 16-18 days compared with four weeks by sea and just under a week by air.

Danish freight forwarder DSV, Dutch freight management company GVT and Maersk all said they were seeing a surge in interest for rail freight between Europe and Asia.

“Land transport between Asia and Europe will always be able to cover only a small share of the total transport volume,” Hellmann’s Heiken said.

 

[Last Monetarist]

https://www.reuters.com/article/us-egypt-suezcanal-shipping-insurance/dislodged-ship-held-in-suez-canal-as-compensation-talks-continue-idUSKBN2C01KD?il=0

A ship that blocked the Suez Canal for almost a week in March has not been given clearance to leave the waterway as discussions continue over a compensation claim made to the vessel’s owner Shoei Kisen, an official from the Japanese company said on Tuesday. The Ever Given has been in a lake separating two sections of the canal since it was dislodged on March 29, as the Suez Canal Authority (SCA) conducts investigations.

Yumi Shinohara, deputy manager with owner Shoei Kisen’s fleet management department, confirmed the canal had made a compensation claim but gave no further details.

A source with the Suez Canal Authority, who declined to be named, told Reuters a court order had been issued for the ship to be held, adding that negotiations were still taking place.

Results of the SCA’s investigation were expected to be announced by the end of the week, two canal sources added.

SCA Chairman Osama Rabie said on Egyptian TV last week that the Ever Given would not leave until the investigation was finished and compensation paid. He also said the canal had borne “great moral damage” as well as shipping fee losses and salvage operation costs. He has also said he hoped to settle matters amicably.

International supply chains were thrown into disarray when the 400 metre (430 yard) Ever Given ran aground in the canal on March 23.

Specialist rescue teams took six days to free the vessel, delaying the passage of more than 400 ships and causing others to divert around Africa.

Industry sources told Reuters last week that reinsurers were set to foot most of the bill for the ship’s grounding, with payouts expected to run into hundreds of millions of dollars.

Ships typically have protection & indemnity (P&I) insurance, which covers third party liability claims including environmental damage and injury. Separate hull and machinery policies cover vessels against physical damage.

Shoei Kisen’s Shinohara said the vessel’s P&I insurer UK Club had received compensation claims for the delays. The UK Club told Reuters “a handful of claims” had been received, declining further comment.

 

[Last Monetarist]

https://www.reuters.com/world/middle-east/three-ever-given-crew-members-leave-ship-2021-04-29/

Three crew members aboard the cargo vessel that blocked global shipping in the Suez Canal last month will be allowed to return home, the ship's manager said on Thursday.

The Ever Given has been anchored in a lake between two sections of the canal since being dislodged on March 29 and is caught in a legal dispute linked to a $916 compensation claim made by the Suez Canal Authority (SCA) against the ship's Japanese owner.

"Our utmost priority remains the safety and wellbeing of our crew. We are in regular contact with them and their families, offering all necessary support," said Ian Beveridge, the CEO of Bernhard Schulte Shipmanagement (BSM).

"While we are hoping that the vessel and her crew will be able to resume the voyage as soon as possible, we are incredibly proud of our master and crew who have and continue to perform their duties to the highest standards with exceptional professionalism under difficult circumstances," he added.

Two other crew members left the ship earlier in April due to urgent personal circumstances, the SCA said.

 

[Last Monetarist]

https://www.reuters.com/world/suez-canal-chief-says-southern-stretch-be-expanded-2021-05-11/

The Suez Canal Authority (SCA) plans to expand and deepen the southern stretch of the waterway where a container ship became jammed and blocked traffic for six days in March, Chairman Osama Rabie said in a televised address on Tuesday.

Rabie presented the plan at an event attended by Egyptian President Abdel Fattah al-Sisi, who indicated that the project should be completed in 24 months at most.

The SCA plans to widen the southernmost 30-kilometre (18-mile) stretch of the waterway between the city of Suez and the Bitter Lakes area by 40 metres (130 feet) eastwards, Rabie said. It also plans to deepen that section to 72 feet from 66 feet.

A second canal lane that opened in 2015 north of the Great Bitter Lake to allow two-directional traffic would be extended by 10km on the southern side of the lake, to reach a total length of 82 km and allowing more ships to pass, Rabie said.

Sisi said that, while further expansion to the canal had been under consideration, the grounding of the 440-metre Ever Given container ship on March 23 highlighted the urgency of the plans.

The vessel, still loaded with thousands of containers, is being held in the Great Bitter Lake amid a dispute over an SCA compensation claim against the Ever Given's Japanese owner Shoei Kisen.

 

[Last Monetarist]

https://www.reuters.com/world/africa/new-compensation-offer-made-over-suez-canal-blockage-lawyer-2021-06-20/

The owners of a container ship that blocked the Suez Canal in March have made a new offer in a compensation dispute with the canal authority, and a court ruling on the case was postponed for two weeks on Sunday to allow more time for negotiations.

The giant Ever Given container ship has been anchored in a lake between two stretches of the canal since it was dislodged on March 29. It had been grounded across the canal for six days, blocking hundreds of ships and disrupting global trade.

The Suez Canal Authority (SCA) demanded $916 million in compensation to cover salvage efforts, reputational damage and lost revenue, before publicly lowering the request to $550 million.

The Ever Given's Japanese owners Shoei Kisen and its insurers have disputed the claim and the ship's detention under an Egyptian court order.

Negotiations had been ongoing until Saturday and the ship's owners had made a new offer, SCA lawyer Khaled Abu Bakr told a court hearing over the ship's detention in Ismailia.

Stann Marine, which represents the owners and insurers of the Ever Given, said: "Over the course of more than 15 days and in extended, long and arduous, but positive working sessions, negotiations are taking place."

"During the negotiations we submitted a proposal that we believe satisfies all the requirements of the SCA," it said in a statement, adding that the details would remain confidential.

The SCA's chairman previously said Shoei Kisen had offered to pay $150 million.

A court ruling was due on Sunday after several delays, but Stann Marine said it had asked for an adjournment. Judicial sources said the case was postponed until July 4 to allow for an "amicable settlement".

This week UK P&I Club, one of the ship's insurers, said it was "hopeful of a positive resolution to these negotiations in the near future".

 

[Firebat]

Ever Given: Ship that blocked Suez Canal sets sail after deal signed

A huge container ship that blocked the Suez Canal in March - disrupting global trade - is finally leaving the waterway after Egypt signed a compensation deal with its owners and insurers.

The Ever Given weighed anchor shortly after 11:30 local time (09:30 GMT) and headed north towards the Mediterranean escorted by tugs.

The ship has been impounded for three months near the canal city of Ismailia.

Terms of the deal were not disclosed but Egypt had demanded $550m (£397m).

As it got under way, Egyptian TV showed footage of the captain and a crew member being presented with flowers and a plaque on board the ship.

The 193km (120-mile) Suez Canal connects the Mediterranean Sea at the canal's northern end to the Red Sea in the south and provides the shortest sea link between Asia and Europe.

But the vital waterway was blocked when the 400m-long (1,312ft) Ever Given became wedged across it after running aground amid high winds. Global trade was disrupted as hundreds of ships were stuck in the traffic jam.

The container ship was refloated following a six-day salvage operation that involved a flotilla of tug boats and dredging vessels. One person was killed during the operation.

Since then, the Suez Canal Authority (SCA) has been seeking compensation from the Ever Given's Japanese owner Shoei Kisen for the cost of the salvage operation, damage to the canal's banks and other losses.

The SCA initially asked for $916m compensation, including $300m for a salvage bonus and $300m for loss of reputation. But UK Club - which insured Shoei Kisen for third-party liabilities - rejected the claim, describing it as "extraordinarily large" and "largely unsupported".

The SCA later lowered its demand to $550m. The final settlement, which has not been revealed, was agreed a few days ago and signed on Wednesday to coincide with the ship's release.

SCA head Osama Rabie told a news conference that the authority would not change its rules about the passage of ships in bad weather. However, he said the grounding had accelerated plans for the canal's expansion.

The UK Club paid tribute to "the work and expertise of the SCA and others whose professionalism and dedication resulted in the ship being refloated".

"Over the last three months we, along with the ship's owners and other interests, have worked closely with the SCA's negotiations team to achieve today's results," a statement said.

Yukito Higaki of Imabari shipbuilding, of which Shoei Kisen is a subsidiary, said the company would continue to be "a regular and loyal customer" of the Suez Canal Authority.

The vessel, with an Indian crew, is still loaded with about 18,300 containers. It is due to undergo an inspection by divers at Port Said before sailing to Rotterdam in the Netherlands and then to the UK port of Felixstowe where it will offload its containers, the Wall Street Journal reported.

https://www.bbc.com/news/world-middle-east-57746424

 

[Last Monetarist]

https://www.reuters.com/business/autos-transportation/specialist-salvage-teams-join-efforts-refloat-suez-canal-ship-2021-03-25/

Egypt's Suez Canal revenue rose to a record $5.84 billion in its 2020-21 financial year (July-June), up from $5.72 bln in the previous year, the Suez Canal Authority said on Sunday.

The Authority also said the canal's revenues in the first six months of this year increased to about $3 billion compared with $2.76 billion in the same period last year, despite the grounding incident of container ship Ever Given in March.

The Ever Given blocked the canal for six days in March and disrupted world trade. It was allowed to leave the canal earlier this month after the Authority reached a settlement with its owner and insurers.

A lawsuit filed by the Authority for compensation before an Egyptian court was called off on Sunday after the settlement, judicial sources said.

The number of ships that passed through the Suez Canal increased in the first half of 2021 to 9,763 vessels compared with 9,546 ships during the same period last year, the canal authority said.

About 15% of world shipping traffic passes through the Suez Canal, the shortest shipping route between Europe and Asia. It is an important source of foreign currency for Egypt.

In the wake of the Ever Given's grounding, the canal authority has accelerated a plan to widen and deepen the southernmost section of the canal, where the grounding took place, and to extend a second lane further north that was built in a 2015 expansion.

 

[Last Monetarist]

https://www.theguardian.com/world/2021/aug/20/ever-given-round-two-container-ship-returns-to-suez-canal

In a rematch of the struggle that dominated global headlines earlier this year, the 400-metre, 220,000 tonne container ship that became lodged in the Suez canal for nearly a week, disrupting trade on a global scale, is having another go.

Several weeks after finally docking at the UK port of Felixstowe – after a months-long negotiation over who should bear the costs of blocking the shipping lane for six days in March – the vessel returned to Port Said, Egypt, on Thursday night.

On Friday, the Panamanian-flagged, Japanese-owned ship began its journey through the canal, accompanied by two tug boats, the state-owned newspaper Al-Ahram reported. Live ship-tracking showed the vessel successfully negotiating the early stages of the canal on its way toward the Red Sea.

The operation in March to free the ship from the canal caused a backlog that delayed the journeys of hundreds of ships, forcing some to take a much longer route around the southern tip of Africa.

A dispute over compensation resulted in the ship being held by Egyptian authorities for months, with its owner, Shoei Kisen Kaisha, arguing the canal authority was at fault for allowing the Ever Given to enter despite poor weather, and the canal authority demanding nearly a billion dollars to cover what it argued were its losses.

The Ever Given was released in July after the two sides reached an undisclosed deal, with the owner saying: “Our company … will continue to be a regular and loyal customer of the Suez canal.”

That appears to be the case as the ship makes its way through the canal with which it will be forever associated in infamy, despite the fact, according to Al-Ahram, it passed successfully through the Suez canal 22 times since its manufacture in 2018.