{"id":214398,"date":"2021-03-29T22:25:25","date_gmt":"2021-03-29T19:25:25","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/giant-ship-blocking-suez-canal-freed-but-economic-impact-looms\/"},"modified":"2021-03-29T22:25:25","modified_gmt":"2021-03-29T19:25:25","slug":"giant-ship-blocking-suez-canal-freed-but-economic-impact-looms","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/giant-ship-blocking-suez-canal-freed-but-economic-impact-looms\/","title":{"rendered":"#Giant ship blocking Suez Canal freed, but economic impact looms"},"content":{"rendered":"

“#Giant ship blocking Suez Canal freed, but economic impact looms<\/strong>”<\/p>\n

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The weeklong closure of the Suez Canal will continue to weigh on the economy despite the massive container ship that has been\u00a0stuck there finally being freed on Monday, experts said.<\/p>\n

Ever Given, the giant ship that has blocked the highly-trafficked waterway since March 23, was pulled free on Monday, a major step toward getting one of the world\u2019s most important trade arteries moving again.<\/p>\n

Companies from\u00a0Ikea to Caterpillar have been affected, and tens of thousands of\u00a0live animals, mostly sheep, have been stuck on ships in the area. Consumer goods like coffee, oil, toilet paper and even a massive shipment of sex toys have also been caught up in the jam.<\/p>\n

While long-term impact of the weeklong closure will likely be small given that global merchandise trade amounts to $18 trillion a year, the blockage has caused a bottleneck by throwing ships off schedule. Some 450 ships carrying cargo are now expected to be delayed in reaching their final destinations for weeks, if not months.<\/p>\n

The dozen or so container carriers that control most of the world\u2019s ocean freight are already charging record-high fees on some routes amid shortages of everything from chemicals and lumber to dockside labor, Bloomberg reported<\/a>. <\/p>\n

\"View
Ever Given, the giant ship that has blocked the highly-trafficked waterway since March 23, was pulled free on Monday.<\/figcaption>
Mohamed Abd El Ghany\/Reuters<\/span><\/figcaption><\/figure>\n

\u201cThe dominoes have been toppled,\u201d Lars Jensen, chief executive of SeaIntelligence Consulting in Copenhagen, wrote on social media<\/a>. \u201cThe delays and re-routing which have already happ<\/a>ened will cause ripple effects\u201d will be\u00a0felt\u00a0for several months.<\/p>\n

Over the course of the week, Egyptian authorities have been desperate to get traffic flowing again through the canal, which is a channel\u00a0for about 12 percent of world trade and about 1 million barrels of oil a day. This has been the canal\u2019s longest\u00a0closure\u00a0since it was shut for eight years following the 1967 Six Day War.<\/p>\n

Douglas Kent, executive vice president of strategy and alliances at the Association for Supply Chain Management said that even though the ship is dislodged, the economic impact of the blockage will be hard to quantify. <\/p>\n

\"Ever
This has been the Suez Canal\u2019s longest closure since it was shut for eight years following the 1967 Six Day War.<\/figcaption>
EPA-EFE\/Shutterstock<\/span><\/figcaption><\/figure>\n

\u201cThe whole knock-on effect through the multi-hierarchy of the supply base \u2014 we\u2019re not going to know that,\u201d Kent told CNBC. \u201cCompanies don\u2019t have visibility into their supply chain.\u201d While a company might know it has a product sitting on a ship that\u2019s stopped, the impact of delays down the line are unknown.<\/p>\n

The blockage had cost nearly $10 billion a day in global trade, placing stress on supply chains already stretched thin during the coronavirus pandemic. Based on rough calculations by maritime intelligence company Lloyd\u2019s List, the closure blocked about $400 million in goods every hour. In total, it impacted about $5.1 billion a day in westbound traffic to Europe and $4.5 billion in daily eastbound traffic.<\/p>\n

Fitch chief economist Brian Coultron told The Post that while the Suez Canal debacle won\u2019t likely have a material impact on gross domestic product, but it may put pressure on global inflation.<\/p>\n

He said the rising price of oil and other commodities is already impacting pricing, and that the Suez Canal incident is \u201cexacerbating all that.\u201d<\/p>\n

\u201cWe\u2019re going to see headline inflation rates pick up quite sharply in the US,\u201d Coultron said, noting that the the uptick will be determined by when navigation can return to normal in the canal. <\/p>\n

\u201cIf things return to normal by the end of the week, I don\u2019t expect a major impact,\u201d he concluded.\n <\/p><\/div>\n

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Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

“#Giant ship blocking Suez Canal freed, but economic impact looms” The weeklong closure of the Suez Canal will continue to weigh on the economy despite the massive container ship that has been\u00a0stuck there finally being freed on Monday, experts said. Ever Given, the giant ship that has blocked the highly-trafficked waterway since March 23, was…<\/p>\n","protected":false},"author":1,"featured_media":214399,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/03\/evergiven-suez-canal-inset.jpg?quality=90&strip=all&w=1200","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[99931,70748,81850,99719],"class_list":["post-214398","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-3-29-21","tag-egypt","tag-shipping","tag-suez-canal"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/214398","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=214398"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/214398\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/214399"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=214398"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=214398"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=214398"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}