Tugs Work to Free Giant Container Ship Stranded in Suez Canal
CAIRO (Reuters) — The shortest shipping route from Europe to Asia remained blocked on Friday as tug boats struggled to free one of the world's largest container ships after it ran aground in the Suez Canal.
The 400-meter, 224,000-ton Ever Given ran aground on Tuesday morning after losing the ability to steer amid high winds and a dust storm, the Suez Canal Authority (SCA) said in a statement.
About 30% of global container shipping volumes pass through the canal each day, carrying everything from fuel to consumer goods. The main alternative route for ships travelling between Asia and Europe, around the African cape, takes a week longer to navigate.
SUPPLY CONCERNS
Data intelligence firm Kpler said 10 crude oil tankers were awaiting entry to the canal. About 4 million barrels of mostly Kazakh CPC Blend and some Russian Urals were waiting along with tankers carrying Libyan, Azeri and some North Sea crude oil for Asian refiners, traders said.
Egypt's SUMED pipeline operator approached crude traders to see whether they wanted to book space in the system but so far traders prefer to wait to avoid high additional costs.
Oil analytics firm Vortexa said ten tankers carrying 13 million barrels of crude could be affected. Oil prices rose more than 2%.
The blockage could delay delivery of millions of tons of LNG to Europe if the vessel stays stuck there for two weeks, analysts said.
During 2020, nearly 19,000 ships, or an average of 51.5 per day, passed through the canal, according to the SCA.
If the Ever Given remained stuck for up to 48 hours, "the impact will be limited to a gradual worsening of already very bad vessel delays", said Niels Madsen, VP of Product and Operations at Denmark-based Sea-Intelligence.
"If on the other hand, the Suez Canal remains blocked for another 3-5 days, then this will start to have very serious global ramifications," he said.
FREEING EFFORTS
The Dutch rescue team had confirmed two additional tugs would arrive on March 28 to help dislodge the ship after an attempt to re-float it on Friday failed, BSM said.
"There have been no reports of pollution or cargo damage and initial investigations rule out any mechanical or engine failure as a cause of the grounding," a BSM statement said.
The Suez Canal Authority (SCA) said efforts to free the ship by tug had resumed following the completion of dredging operations at its bow to remove 20,000 cubic meters of sand.
About 12% of world trade by volume passes through the canal, and it is a major source of hard currency for Egypt, generating $5.6 billion in 2020.
Tracking maps had shown the ship grounded in the southernmost stretch of the waterway, between the Great Bitter Lake and the Red Sea port of Suez.
At least 30 ships were blocked to the north of the Ever Given, and three to the south, local sources said. Several dozen ships could also be seen grouped around the northern and southern entrances to the canal.
REBALANCING EFFORTS
The SCA said it was trying to rebalance the ship, and local sources said efforts could shift towards digging the ship out if the tug boats were unable to release it.
Dutch marine services company Boskalis said its subsidiary Smit Salvage had been hired to help with the operation and was sending 10 people to Egypt.
In such cases, "you really have to do the calculations to understand how solidly she (is) grounded, and how much power you can exert without damaging the vessel," Boskalis spokesman Martijn Schuttevaer told Reuters.
Bernhard Schulte Shipmanagement (BSM), the ship's technical manager, said the Ever Given had run aground in the canal at around 05:40 GMT on Tuesday. It said an investigation was underway.
BSM said the crew were safe and there were no reports of pollution. A BSM spokesperson said the vessel was owned by Japan's Shoei Kisen KK, declining to provide further details. Shoei Kisen KK could not be reached for comment.
Taiwan's Evergreen Marine Corp, which is leasing the vessel, said the owner had told it the ship "was suspected of being hit by a sudden strong wind, causing the hull to deviate from (the) waterway and accidentally hit the bottom.”
The ship is likely to have been insured for $100-140 million, insurance brokers say.
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