CAIRO: Ships in the Suez Canal were being diverted to an older channel on Wednesday after a large container ship ran aground, blocking vessels passing through one of the world's most important waterways, maritime sources and companies involved said.
About 12% of world trade, by volume, passes through the canal connecting Europe and Asia, and the Suez Canal Authority (SCA) remains a major source of hard currency for Egypt.
At around 05:40 GMT on Tuesday, one of the largest container ships in the world - the 200,000-tonne Ever Given - ran aground in the canal, Bernhard Schulte Shipmanagement (BSM), the ship's technical manager said. BSM said as investigation was underway.
Sources said the mishap occurred because of bad weather. Operations to float and free the vessel began on Wednesday morning, they said, adding that some delays to shipping were expected.
Shiptracking data on Refinitiv Eikon showed seven tug boats coming to the aid of the Rotterdam-bound vessel, which appeared in tracking maps to still be grounded. It was unclear how soon the vessel would be free.
GRAPHIC: Grounded ‘Ever Given’ container ship chokes one of the world’s most vital shipping lanes - https://fingfx.thomsonreuters.com/gfx/ce/qzjpqldqovx/EverGivenShippingJam.png
The ship is 400 m (1,312 feet) long and 59 m (193 feet) wide, and can carry up to 20,000 20-foot equivalent (TEU) shipping containers.
Taiwan's Evergreen Marine Corp, which is leasing the vessel under a time charter, said the shipowner had informed the company that the ship "was suspected of being hit by a sudden strong wind, causing the hull to deviate from waterway and accidentally hit the bottom and run aground".
BSM, which handles the ship's crew and technical issues, said all the crew are safe and accounted for and that there have been no reports of injuries or pollution.
BSM has notified the authorities and "interested parties" but said it could not confirm who is the owner of the ship.
"All parties are currently investigating the cause of the grounding and it would be incorrect to speculate on any one given cause at this time," BSM said in an e-mail to Reuters.
Port agent GAC said on Wednesday on its website that 15 other ships in the northbound convoy behind the Ever Given were detained at anchorages waiting for the canal to be cleared. A southbound convoy was also blocked.
GRAPHIC: Grounded ‘Ever Given’ container ship causes massive ship jam in Suez Canal - https://fingfx.thomsonreuters.com/gfx/ce/xlbvgxmropq/EvergivenShipJam.png
SHIPPING DELAYS
A growing number of tankers have gathered near the entrance to the canal, waiting to pass through.
Asia-Europe container trade flows are picking up again after the Lunar New Year so an extended blockage would have severe consequences as the alternative route via the Cape route will be a week slower, said Tan Hua Joo, a consultant with Liner Research.
Any delays will exacerbate the shortage of container ships and boxes, as 30% of global container ship capacity passes through the Suez, according to data from Liner Research Services.
During 2020, nearly 19,000 ships, or an average of 51.5 ships per day, with a net tonnage of 1.17 billion tonnes passed through the canal, according to the SCA.
The impact on oil and gas flows will depend on how long it takes to clear the container ship, the sources said.
As of Wednesday, five laden liquefied natural gas (LNG) tankers were unable to pass through the canal due to the grounded container ship, according to data intelligence firm Kpler. Of the five, three were bound for Asia and two for Europe, said Kpler analyst Rebecca Chia.
She said that iIf the congestion persists until the end of this week, it would affect the transit of 15 LNG tankers.
Reuters
Wed Mar 24 2021
A container ship which was hit by strong wind and ran aground is pictured in Suez Canal, Egypt March 24, 2021. SUEZ CANAL AUTHORITY/Handout via REUTERS pic
Former special forces commander Prabowo to take up Indonesian presidency
Indonesia's Prabowo Subianto will take over as president of the world's third-largest democracy after sweeping the country's election with policies like free meals for school children
Who is Prabowo Subianto, incoming president of Indonesia?
A wealthy ex-general with ties to Indonesia's popular outgoing president and its dictatorial past, looks set to be its next leader.
Trump says he would impose tariffs on China if China went into Taiwan
Republican presidential candidate Donald Trump said he would impose additional tariffs on China if China were to "go into Taiwan,"
Iran's supreme leader says Hamas leader's death will not halt 'Axis of Resistance'
The "Axis of Resistance", built up with years of Iranian support, includes Hamas, the Lebanese Hezbollah group, the Houthi movement in Yemen, and various Shi'ite groups in Iraq and Syria.
Putin says Russia willing to seek compromises between Iran and Israel
Russia is ready to help seek compromises between arch-foes Israel and Iran, President Vladimir Putin said on Friday, saying these would be difficult but possible.
What proposals will Russia push at the BRICS summit?
The proposal is also to establish a BRICS reinsurance company to allow uninterrupted shipment of goods and key commodities between members.
Indonesia's free meals plan in the spotlight as Prabowo readies for office
Prabowo calls the programme one of the main drivers of economic growth, eventually set to add an estimated 2.5 million jobs.
Astro AWANI's revamped English news website, AWANI International, launches on Oct 21
Astro AWANI's revamped English platform delivers in-depth global news and expert analysis to keep you informed on key developments.
Israeli strikes kill 33 people in Jabalia refugee camp in Gaza, medics say
Residents of Jabalia said Israeli tanks had reached the heart of the camp after pushing through suburbs and residential districts.
Liam Payne's ex-partner calls for media restraint after 'painful' death
Cheryl Tweedy used her statement to urge the media to remember they had a seven-year-old son, Bear, who could read the reports.
Analysts: Indonesia's strong MoF leadership team to boost investor confidence
Sri Mulyani Indrawati as head of Indonesia's Ministry of Finance is expected to instil confidence among investors.
Biden offers both a carrot and a stick to Israel as his term nears an end
Israel has frequently resisted US advice and has caused political difficulties for the Biden administration.
Putin says BRICS will generate most of global economic growth
Russian President Vladimir Putin will host a summit of the group in the city of Kazan on Oct. 22-24.
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.