How did the Suez Canal blockage affect the supply chain?

The canal’s temporary blockage created a domino effect of global supply chain disruptions, exacerbating already congested ports, railyards, and distribution centers; further straining containership shortages; and delaying shipments, including the delivery of raw materials that will also impact downstream production and …

What are the economic impacts of the Suez Canal blockage?

Suez Canal Authority chairman, Osama Rabie, in a TV interview estimated that damages and losses arising from the EVER GIVEN blockage could cross over $1 billion. German insurer Allianz had said in a recent analysis that the blockage could bring down the annual global trade growth by 0.2 to 0.4\%.

How much do ships pay to use the Suez Canal?

The Suez Canal is one of the world’s most important routes, and it’s costing $400million per hour in delayed goods, Lloyd’s List reported. The canal, which runs through Egypt, provides a vital shipping route that connects Europe to Asia.

How much damage did the Suez Canal blockage cost?

COST OF SUEZ CANAL DISRUPTION The Suez Canal blockage roughly cost 12 per cent of global trade and was holding up trade valued at over $9 billion per day, according to data from Lloyd’s list. This is equivalent to $400 million worth of trade per hour or $6.7 million per minute!

What companies are affected by Suez Canal?

The top nine European industries expected to be most impacted by delays through the Suez Canal:

• Eating and drinking establishments.
• Construction.
• Wholesale trade.
• Chemicals and allied product-related businesses.
• Health services.
• Food retailers.
• Industrial and commercial machinery and equipment.
• Metal production.

How much money is lost Suez Canal?

The authority that operates the Suez Canal has already said the crisis has cost the Egyptian government up to $90 million in lost toll revenue as hundreds of ships waited to pass through the blocked waterway or took other routes.

What does the Suez Canal crisis mean for shipping?

Stranded container ship Ever Given, one of the world’s largest container ships, is seen after it ran aground, in Suez Canal, Egypt March 25, 2021. The crisis is another blow to the global supply chain after a brutal year ridden with delays, shortages and price squeezes on the back of the coronavirus pandemic .

Will the Suez Canal blockage increase the risk of oil attacks?

Meanwhile, analysts have highlighted increased risk of attacks on oil facilities amid greater energy supply chain vulnerability and regional tensions. The behemoth cargo ship stuck in the Suez Canal and blocking traffic in one of the world’s most important maritime trade chokepoints isn’t set to break free just yet.

How much will the Suez Canal blockage cost Egypt?

SCA chairman Osama Rabie on Saturday that the Canal’s revenues were taking a $14m-$15m (£10.2m-£10.9m) hit for each day of the blockage. Prior to the pandemic, trade passing through the Suez Canal contributed to 2\% of Egypt’s GDP, according to Moody’s.

Which industries rely on the Suez Canal?

And the containerized industries that rely on the canal are extremely varied, including large retailers like Walmart, Ikea and Tesco; the automotive industry; and technology, Sand said. “This affects everyone, basically,” he said. On Wednesday, ships began to line up on either side of the Suez Canal.