A traffic jam in the “world’s most important waterway” may have you running into delays and/or higher prices.
What’s Going On?
A gigantic ship got stuck in Suez Canal.
- Not just any ship: The Ever Given, one of the largest cargo ships in the world. Stand it up and it would be nearly as tall as the Empire State Building.
- Not just any canal: This man-made canal is a link between the Middle East & Europe, from the Red Sea to the Mediterranean Sea. Dozens of ships sail through daily, carrying everything from oil to electronics to shampoo.
How Did This Happen?
TBD. Initial reports: bad weather (wind/dust/poor visibility) at a precarious spot in the canal.
The canal narrows at certain points which require single-direction travel.
The Ever Given is stuck in a narrow pass, almost perpendicular to the canal & touching or nearly touching each bank – effectively blocking the canal entirely.
Why Does This Matter?
Global trade delays: About 50 ships move through this canal every day. Now 150+ are stuck, waiting for the waterway to clear.
Even if the ship is “free” by the time you read this report, the ripple effect of delays adds another variable to an already-stressed supply chain trying to get back on track during the pandemic.
So what would it take to "go around" (Africa) and not use the canal? About 15 days, according to one estimate. And remember – it's not just manufactured goods that are potentially delayed, but also the parts used to make goods. Analysts say this event will have an effect; how BIG of an effect remains TBD.
“The Suez Canal is one of the most important waterways in the world.” – CLICK HERE FOR MORE
A good read to catch-up: CLICK HERE
by Jenna Lee,