The Suez Canal siege could take weeks

March 27, 2021, 1:24 am
BERLIN, March 27 (Brenza Latin) Bernhard Schultz Ship Management, the German marine company responsible for the technical management of the Evergreen ship, has warned that it could take days or even weeks for traffic to resume via the Sovereign Canal.

The first attempt to defeat the 400-meter-long container vessel that ran four days ago this Friday failed, which is why experts say the waterway is the 10 percent crossing route in international maritime trade.

At 193.3 kilometers long, it is the shortest sea route between the ports of the Atlantic and Indian Oceans, for which about 50 ships pass through it daily, paying a total of eight million dollars.

By sea, the ship could not carry dozens of ships to the Suez Canal, one of the world’s most important trade routes, and the siege cost the world economy $ 400 million an hour.

These calculations by the Taiwanese newspaper Commercial Times take into account that the main oil supply route from the Middle East to Europe and the United States is about 600 thousand barrels of crude a day.

Each year, shipping fees from around the world through this channel contribute more than five billion dollars to Egypt’s budget. By 2020, according to the Suez Canal Authority, 18,829 vessels had sailed there, and revenue, despite epidemics, reached $ 5.61 billion.

The Kuwaiti Gulf Agency has warned that if this is interrupted, it could have serious repercussions globally and have an impact on the prices of oil and other commodities.

Many oil tankers with 10 to 13 million barrels (10.5 to 14.7 per cent of world daily consumption) are stuck in the canal, Egyptian sources point out, a situation that threatens to change the timetable for oil deliveries. This Friday saw a rise in the price of crude oil and derivatives.

According to experts, if this situation continues, ships will begin to circle Africa via the Cape of Good Hope, which will significantly increase the length of a route and the cost of delivering goods.

In addition, the lack of tankers will increase the cost of cargo, as well as the price of marine fuel, which is constantly being produced from oil.

However, Bloomberg analysts predict that buyers in Europe and the United States will now be able to trade oil from the Middle East to other parts of the Gulf of Mexico, the North Sea, Russia and West Africa.

As a result, they predict that the Mars mix will also require crude from the Urals and Asia and the Russian Far East.

Car / CRC