All eyes on Suez Canal after stuck container causes world's largest shipping jam

A skyscraper-sized cargo ship wedged across Egypt's Suez Canal further imperiled global shipping Thursday as at least 150 other vessels needing to pass through the crucial waterway idled waiting for the obstruction to clear, authorities said.The Ever Given, a Panama-flagged ship that carries cargo between Asia and Europe, ran aground Tuesday in the narrow, man-made canal dividing continental Africa from the Sinai Peninsula. In the time since, efforts to free the ship using dredgers, digging and the aid of high tides have yet to push the container vessel aside.(Credit: AP/ PTI)

How the Suez Canal logjam perils global trade

Taiwan-owned MV Evergreen, a 400-metre-long and 59-metre-wide vessel, is lodged sideways and impeding all traffic across Egypt's Suez Canal. Credit: AFP Photo

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. Credit: AFP Photo

Evergreen Marine Corp, said in a statement that the Ever Given had been overcome by strong winds as it entered the canal from the Red Sea but none of its containers had sunk. Credit: AFP Photo

Canal service provider Leth Agencies said at least 150 ships were waiting for the Ever Given to be cleared, including vessels near Port Said on the Mediterranean Sea, Port Suez on the Red Sea and those already stuck in the canal system on Egypt's Great Bitter Lake. Credit: AFP

Tuesday marked the second major crash involving the Ever Given in recent years. In 2019, the cargo ship ran into a small ferry moored on the Elbe River in the German port city of Hamburg. Authorities at the time blamed strong wind for the collision, which severely damaged the ferry. Credit: Reuters Photo

If the ship is not freed within a few days, it would add one more burden to a global shipping industry already reeling from the coronavirus pandemic, creating delays, shortages of goods and higher prices for consumers. Credit AP Photo

The blockage has already hit world oil markets. Crude futures surged six percent on Wednesday as traders assessed the likely impact on deliveries. Broker Braemar warned that if tug boats are unable to move the giant vessel, some of its cargo might have to be removed by crane barge to refloat it. Credit: Reuters

The impact of the Suez Canal blockade on oil prices is limited as the destination of most oil tankers is Europe, but European demand is currently weak due to a new round of lockdowns. Credit: AFP Photo

Trade and shipping sources said that, depending on how long the Suez disruptions last, the transport of goods from manufacturers in Asia to buyers in Europe could be affected further. Credit: Reuters Photo