Corporate news
Corporate news
The "Ever Given" wheel failed to float again in the Suez Canal
Mar 28,2021

The "Ever Given" wheel failed to float again.
The chairman of the Suez Canal Authority, Osama Rabieh, said at a press conference on March 27 that 321 vessels were waiting to sail through the canal.

According to Marinetraffic and ClipperData, shipping companies are scrambling to divert large numbers of vessels -- including container ships, tankers and dry bulk vessels -- to the Cape of Good Hope to avoid the chaos in the Suez Canal.

The Dutch team of rescue experts said the conditions for the Ever Given were far more dangerous and complicated than had been thought, with conservative expectations that it could take weeks. In the worst case scenario, the ship would "break in two" in the Suez Canal.
If the dredging and towing work goes well and the ship is expected to break free early next week in conjunction with the coming high tide, the team said Wednesday.

The salvage effort is now focused on removing sand and mud embedded near the embankment by the bow of the ship.
At present, about 10 tugboats and two large dredgers are trying to free the Ever Given. Two more tugboats are due to arrive on Sunday. The tides are expected on the 28th, giving a perfect chance to float free.

Failure to escape from difficulties, temporary dredge hopeless!

In the rescue operation over the past few days, the rescue team first used excavators to dig the shore to free the prow of the freighter, which had become stuck in the embankment of the canal when it got out of control, and then coordinated with a number of tugboats from north and south in an effort to push the Chang Ci northward and away.
However, "Changci" large size, draft is too heavy, "several attempts ended in failure.

Despite the slow progress of the rescue operation, the rescue team hopes that the high tide of the Suez Canal on March 28 will bring enough buoyance to lift the cargo ship, so experts have been carrying out a weight-reduction assessment since the evening of March 25, and have started to remove the excess weight of the cargo ship.

"We don't want to predict the progress," Peter Berdowski, head of the Dutch Salvage company Smit Salvage, which EVA has hired as an emergency Salvage team, said in a television interview. "The risk situation is extremely complex. It could be days or weeks."
Over time, the negative ripple effects of the "traffic jam" in the Suez Canal began to emerge, Bedowsky noted: "If the pursuit is to get out safely, the whole mission is really urgent, and the worst case scenario is that the stuck freighter breaks in half in the Suez Canal.

Suez Canal Authority (SCA) President Osama Rabie, speaking at a press conference on Tuesday, gave details of the rescue operation, which he described as "technically difficult" and "involving many factors."
The cause behind the accident was not immediately clear.
"There are many factors or causes," he said. "High winds and dust storms could be one cause, but not the main one. There could also be technical error or human error.
Will be subject to further investigation."
Many countries, including China, the United States, Greece and the United Arab Emirates, have offered assistance, it added.
The ship's owner, Zhenyong Steamship, said it would consider unloading the containers if other rescue efforts failed.

According to the analysis, the priority of removing the fuel and ballast water would be a safer option, but the weight removed would probably not be enough to help Ever Given out of the water. With tidal times approaching, the team was extremely anxious, the BBC reported.

No hope of dredging!
A large number of ships may be diverted around the Cape of Good Hope

As delays continue, many waiting ships will have to consider the cost of delays and the timeliness of their cargo. If the Suez Canal is not cleared soon, a detour around South Africa's Cape of Good Hope will become a last resort for many vessels.

About 19,000 ships passed through the canal in 2019, accounting for 10 percent of the world's seaborne trade. The rare accident also has knock-on effects on global trade that are still hard to measure.
According to MarineTraffic, 97 boats are moored on the upper part of the canal, with 23 waiting in the middle and 108 below. The gridlock crosses the Red Sea, passes through the Gulf of Aden, and extends to the border between Yemen and Oman.

Several shipping companies have said they are considering a detour around the Cape of Good Hope after repeated failed attempts to pull the canal out of trouble. A large number of vessels, including container ships, oil tankers and dry bulk vessels, have started to bypass the Suez Canal and bypass the Cape of Good Hope.
On March 26, the Ever Greet, a sister ship of Evergreen Marine's Ever Given, bypassed the Suez Canal and rerouted to the Cape of Good Hope in South Africa.
HMM's Hyundai Prestige container ship will sail directly to Asia around the Cape of Good Hope, with the next port of call being changed from Suez to Limchabang, Thailand. Another HMM ship, the 24,000 TEU HMM Rotterdam, also arrived in the Strait of Gibraltar and turned back south to the Cape of Good Hope, making a direct detour to Singapore.
OOCL Berlin's 13, 000TEU container ship has turned back south to the Cape of Good Hope after passing through the Strait of Gibraltar.
Shipping giant Maersk has revealed that 22 of its cargo ships have been affected by the blockage of the Suez Canal, with two of them diverted to the Cape of Good Hope.
In the Mediterranean, 11 ships are being diverted, 19 are anchored on either side of the canal and two are being turned back.

Caroline Bequart, senior vice president of the MSC, said in an email on Saturday that the blockage of the Suez Canal was "one of the biggest disruptions to global trade in recent years." "We expect the second quarter of 2021 to be more disruptive than the first three months and even more challenging than the end of last year," she said. "It should be realized that the blockade of Suez will lead to a contraction of capacity and equipment, which will lead to some aggravation of supply chain reliability issues in the coming months."
Both Maersk and Herberot said they were considering sending ships around Africa to avoid the clogged Suez Canal. In a statement, Maersk said, "We are studying all possible alternatives, including a detour around the Cape of Good Hope, as well as many other options, such as air transport for critical, time-sensitive cargo. No decision has been made yet. It depends on how long the Suez Canal will be blocked." The company is monitoring the situation and keeping a close eye on the impact on its cargo services, and is currently studying possible routes around the Cape of Good Hope, "Haprot said in a news release.
On a typical day, it takes about 12 days for a cargo ship to travel from the Suez Canal to Amsterdam in the Netherlands and 41 days to make a detour around the Cape of Good Hope in South Africa, adding about 10,000 kilometers to the journey and costing an additional 7 million rand, or nearly half a million dollars.
For ships sailing from Asia to Europe, bypassing Africa instead of going through the canal can add seven days to the journey.
Refinitiv, a financial data company, noted that traveling from Egypt to Rotterdam in the Netherlands via the Suez Canal typically takes 11 days, but the detour around the Cape of Good Hope will add at least 26 days. The fuel cost of the detour is about $30,000 a day.
Stretching in the Suez Canal, waiting for it to reopen to traffic, costs $15, 000 to $30, 000 a day.
According to "easy shipping schedule"

Congestion in the global container supply chain has spread since last year and now extends from Europe and the US to the port of Singapore. The Suez Canal blockage, if not opened as soon as possible, may further disrupt global container traffic, to the already strained international shipping industry added to the "new worries".

Singapore's transport minister said Thursday that the port of Singapore needs to be prepared for possible cargo delays and supply disruptions. Industry insiders fear a new round of port congestion could follow if the Suez Canal blockage is not resolved quickly.
Japanese shipowner apologizes, compensation may exceed 600 million
The blocking of the Suez Canal caused great economic losses. Lowe's Daily estimates that the closure of the Suez Canal costs world trade $400 million an hour. Some analysts pointed out that the incident will also make the already tight global logistics, shipping rates are expected to further rise and set a new record.
The Egyptian government is also worried. Figures show that in 2019, the Suez Canal generated $5.75 billion in revenue for the Egyptian government, accounting for 9.58% of the country's annual fiscal revenue. Even in 2020, when COVID-19 is in the air, the Suez Canal will still have revenues of $5.61 billion.
The ship's owner and the company that owns it, Zhenyong Steamboat, reportedly said they were trying to resolve the problem as soon as possible, but it was proving difficult to move the ship out. And a sincere apology to the canal, the congested vessels and vessels planning to pass through the canal and all parties involved.

Shipping lawyers believe it could become the world's biggest container ship claims disaster. A series of major insurance claims include the Japanese ship-owner Zhenei Steamboat and its insurance company, which may face claims from the Suez Canal Authority, as well as claims for lost revenue from ships whose traffic was disrupted or disrupted; The compensation for hull and mechanical damage to the container ship alone is expected to reach $100 million to $140 million; The owners of the cargo on the affected vessel may also lodge claims for damage or delay in delivery, etc.
Rahul Khanna, head of global Marine risk consulting at AGCS, said the canal authority would also most likely impose fines on shipowners and claim damages for the canal. According to the Wall Street Journal, the ship's owner, Japan's Masei Steamboat, was held responsible for the collapse of the Suez Canal due to lease agreements. So far, rough estimates of possible claims have reached more than US $100 million (650 million yuan).
The impact of the interruption of the Suez Canal on trade
The "blocking" of ships in the Suez Canal will also have a butterfly effect, affecting the supply of oil, gas and copper on the global market. The Suez Canal handles 106 ships a day, according to the World Maritime Council. If the canal is blocked for two days, it will take another two days to clear the congested vessels once it is open again, and the longer the blockage lasts, the longer it will take to clear it.

Lars Jessen, chief executive of Sea-Intelligence, a shipping consultancy, said that even if the Suez Canal were temporarily disrupted, the global container supply chain would still be able to operate, but further disruption was inevitable. In fact, in February, two-thirds of ships were more than seven days late on their scheduled arrivals, according to Sea-Intelligence. Supply chains are already suffering from container shortages, flight suspensions and congestion at some regional hubs. From the consumer's point of view, the supply chain is robust. But from a trader's point of view, it is a different story. The disruption of the canal blockade will certainly cause a series of troubles, but it may also be an opportunity for some companies, as those that are good at handling logistics will gain a significant advantage over their competitors in the coming months, "he said.

About 25% of the world's container transportation needs to pass through the Suez Canal. Due to the imbalance of container distribution and the shortage of containers in Asia, the shortage of containers will be further worsened if the return journey is affected continuously. At that time, the price of container transportation will increase rapidly under the dual disturbance of sentiment and fundamentals.
In the context of COVID-19, the crisis is another blow to the global supply chain, according to the US website CNBC. Shipping delays could affect everything from clothes and shoes people order online to fitness equipment, electronics, food and global energy supplies. In addition, about 30 percent of the world's oil shipped by sea passes through the Suez Canal. In other words, for every day the Suez Canal is closed, millions of barrels of oil are delayed, and the cost to businesses and customers can be imagined