Suez Canal's Latest Crisis

On March 23, 2021, the Suez Canal made national headlines for a rather unpleasant reason. The Egypt-based, man-made waterway endured a blockage initiated by the Ever Given, a 1300 foot long container ship carrying all sorts of goods from China headed to a port in the Netherlands. 

Captured above is the position of the Ever Given as it struggled to move through the Suez Canal.

The effects of this nautical incident extend far beyond delaying the arrival of Ever Given's cargo. The Suez Canal is one of the most lucrative trading routes in the world. The water was blocked for six days, having a global impact. 400 other ships were prevented from transporting their goods as well. The canal blockage cost the global market around $400 million per hour. Transporting an estimated $9 billion of goods per day, the financial implications of this blockage will run deep into the future of global finances. The Suez conducts 12% of all global trade, and holds 30% of container ship traffic on a daily basis.

This graphic shows the Suez Canal's significance to the world. 

The Ever Given has since been dislodged from the canal, after the efforts of twelve tugboats and almost a week's worth of time. The financial scars left by this incident will continue to haunt the global market in the upcoming months, as will the safety of the canal itself. How can something like this be prevented in the future? Will there be restrictions on the size of ships from here on out? Will that slow down the transportation of goods and the resources available, costing more in the long run? This small slip up definitely made catastrophic waves on the global economy.

References:

Lu, Marcus. “Suez Canal: Critical Waterway Comes to a Halt.” Visual Capitalist, 26 Mar. 2021, www.visualcapitalist.com/suez-canal-critical-waterway-comes-to-halt/.

Neuman, Scott, and Jackie Northam. “How A Long Shutdown Of The Suez Canal Might Have Roiled The Global Economy.” NPR, NPR, 29 Mar. 2021, www.npr.org/2021/03/26/981600153/heres-how-a-long-shutdown-of-the-suez-canal-might-roil-the-global-economy.

Suez Canal Authority. “Continuing the Floatation Works of the Grounding Vessel in the Suez Canal.” SCA - Continuing the Floatation Works of the Grounding Vessel in the Suez Canal, www.suezcanal.gov.eg/English/MediaCenter/News/Pages/Navigation_new25-03-2021.aspx.

Yee, Vivian, and Peter S. Goodman. “Suez Canal Blocked After Giant Container Ship Gets Stuck.” The New York Times, The New York Times, 24 Mar. 2021, www.nytimes.com/2021/03/24/world/middleeast/suez-canal-blocked-ship.html.