$9.6 Billion worth of Goods held up by Suez Canal Blockage

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Evergreen now free indeed from Legal woes

The Suez Canal blocked by a 220,000-ton container ship – Ever Given and has been estimated to take up to weeks to unstick due to its enormous weight on the sand according to the CEO of Boskalis, Peter Berdowski. It is also holding up $9.6 billion worth of trade goods.

The Suez Canal which connects the Red Sea and Mediterranean across Egypt transport close to 10% of global freight including crude oil. It is one of Egypt’s major revenue driver. Currently, as many as 100 ships are stuck on both sides of the Ever Given

As a result, the biggest shipping trade companies are considering routing ships along the Horn of Africa to get their goods to its destination. This route 6000 miles longer will cost an additional $300,000 in fuel costs.

According to the expert, a combination of dredging the sand and unloading the ship is paramount to get it to float again. If the cargo ship remains stuck for a longer period, we can begin to anticipate a ripple effect in the global economy due to the rising costs of stranded cargo.