The Truth About The Suez Canal Crisis: The Supply Chain Breakdowns & Inventory Shortages
An enormous cargo ship is currently blocking 10% of the world’s trade in the Suez Canal.
The 400 meter-long and 59 meters wide Ever Given container ship ran aground early on March 23rd as it traveled north from the Red Sea towards the Mediterranean, twisting diagonally across the width of the canal.
As a consequence, the traffic on the crucial waterway linking the Mediterranean and the Red Sea has been at a standstill for two days after the MV Ever Given ran aground in high winds.
And at least 250 other vessels needing to pass through the crucial waterway are sitting idle.
Efforts to refloat the ship have failed so far, and the waterway could remain blocked for weeks. This will have a major knock-on effect on global shipping and trade.
Egypt’s Suez Canal Authority (SCA) said it was temporarily suspending navigation through one of the world’s busiest shipping lanes until the grounded container vessel MV Ever Given is refloated.
The announcement on Thursday came after low tide overnight slowed efforts to dislodge the massive vessel that has chocked traffic in both directions along the canal and created one of the worst shipping jams seen in years. This is an enormous vessel. It is one of the biggest in the world. It is 400 meters long. The Suez canal is 200 meters wide. There are 20 thousand containers onboard.
Every day, 50 vessels on average go through that canal, so the closing of the canal means no vessels are transiting north and south.
‘Every day the canal is closed, container ships and tankers are not delivering food, fuel, and manufactured goods to Europe, and goods are not being exported from Europe to the Far East. Those containers are full of the chips needed to make cars.
There are now according to Lloyd’s List, 250 vessels waiting to go through the Suez canal, and they really are STUCK.
For the full transcript go to https://financearmageddon.blogspot.com