2021-03-27 18:44:47
To get an idea just what a shortcut could be lost, commodity analysts Kpler said that for a vessel averaging 12 knots (14 mph), Suez to Amsterdam, takes 13 days via the canal. Around the Cape of Good Hope, it takes 41 days.
The greatest impact would be felt in the European market, which relies most on transfers through the canal, but given the interconnected nature of global manufacturing and commerce, there's likely also to be a knock-on effect for the United States.
A weeklong delay for a few hundred ships at the Suez might have only a negligible impact for consumers, but a prolonged delay could increase the cost of shipping, complicate manufacturing and ultimately drive up prices.
The problem at the Suez Canal could disrupt the flow of containers.A trade imbalance between Europe and Asia means that filled containers going west return mostly empty to ports in the east to be refilled.Empty stocks could dwindle in Asia,leading to increased prices.
A prolonged blockage at the Suez would have financial implications borne by the owners, but then passed onto the insurers.That will obviously result in a spike in insurance premiums.
Shipping rates for petroleum products have nearly doubled since the Ever Given's grounding on Tuesday, according to Reuters. Lets all hope the ship is refloated within the week and normalcy restored. We can do without this unforeseen crisis on top of the pandemic.
@MOTIVE
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