Loss from Suez Canal Blockage per Hour is Enormous

It was recently reported that a massive container was stuck at the Suez Canal sideways and was blocking the entire passage. Unfortunately, the situation at the site is still the same as the container is still stuck there. By now, it has been confirmed that the name of the massive container is “Ever Given”.

Now the officials from different trade companies have started talking about the matter as it has now become a global problem. It has been claimed that every hour that the Ever Given remains stuck in the Suez Canal is costing around $400 million in trade being held.

This speculation has been made after calculating the daily trade volumes that pass through the Suez Canal on a regular basis. This information has been shared by Lloyd’s in a list, which is a news and shipping data company.

According to the news and shipping data company, Lloyd’s, on average, the daily trade volume that comes in from the westbound traffic is approximately $5.1 billion. On the other hand, the eastbound traffic is observed a daily trade volume worth $4.5 billion on average per day.

The vice president of the customs and supply chain policy at the National Retail Federation, Jon Gold has also talked about the Ever Given matter and explained exactly how dire the current situation is.

Gold stated that this incident is causing damage to the trades industry, which is already very much hampered. The global trades have already suffered a lot due to the pandemic, rendering the entire world’s trades crippled in the year 2020.

Now that the situation was coming back to normal and trades were starting to pick up, this incident has taken place and is damaging the trade industry even more.

He stated that as long as the container vessel remains stuck in the Suez Canal, it will continue causing a lot of financial damage to the trades business. The situation is now becoming dire and it is even causing delays for the normal cargo flows.

For now, the world is not realizing how dire the situation is but once it is time that is when the affected regions will start realizing the damage this blockage is causing.

He also stated that the members of the trade groups are currently working together in order to find a fast solution to this problem. Right now, the major concern is to assess exactly what would happen when the operating teams try to bring the ship to its original position inside the canal.

For now, it is extremely important to keep the liner safe so it does not get damaged or end up getting sunk in the canal. If that happens, then the situation would become even direr for the trading companies.

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