Spring tide near the Suez Canal is set to occur today, which follows concerns over the canal’s recent blockage by
Spring tide near the Suez Canal is set to occur today, which follows concerns over the canal’s recent blockage by a container ship.
The Golden-class container ship Ever Given was stranded after an intense dust storm last week, causing an unexpected obstruction in the canal. The vessel was en route to deliver goods to Rotterdam. Since the incident, commercial ships have idled while waiting for clearance, extending shipping delays. This blockage has affected international trade, as many manufacturers are dependent on the arrival of crucial merchandise transported by container ships traversing the Suez. The alternate route around Africa drastically increases shipping time and is vulnerable to piracy, particularly along the Gulf of Guinea.
The floating of the Ever Given’s means canal traffic is no longer stuck. However, depending on its strength, the spring tide could further slow-down waterway movement. Natural gas and petroleum prices are expected to slightly increase in the near future due to the periodic delay of fossil fuels transported from the Persian Gulf. In addition, industrial manufacturers that count on the delivery of raw materials from Asia will also likely face severe logistical adversity. This will have an immediate effect on supply chain logistics, especially for European and American markets, as the production assembly lines will face significant delays.
Wake up smarter with an assessment of the stories that will make headlines in the next 24 hours. Download The Daily Brief.