Corporate news
Corporate news
The freight will increase again because vessel strande inThe Suez Canal!
Mar 29,2021

1. According to Egypt Today, rescue efforts are beginning to pay off. The stranded cargo ship Ever Given has begun to move. The ship has moved 17 meters to the north and its rudder has moved 30 degrees. Rescuers have been able to move the stern of the ship and have managed to get the rudder and propeller working, the report said. There are positive signs that the ship may be able to float again.
2. The canal supplier said the rescue effort was delayed on Sunday because of high winds in the area. The best chance to refloat the ship may come Monday, according to The New York Times.
The head of the SCA Osama Rabie told Egyptian state television that the two days of efforts had seen positive results and hope. However, two SCA sources told Reuters that a large rock had been found at the bow of the ship, complicating salvage efforts.

4. According to the news of Al Arabiya Satellite TV on the 28th, the President of the Suez Canal Authority (SCA) Osama Rabie said that Egyptian President Abdel Fattah al-Sisi had ordered that containers should be unloaded to relieve the load of the stranded cargo ship so as to help the ship refloat. Osama Rabie, the head of the authority, told Egyptian television: "The president ordered that the third scenario (unloading) should not be considered until the first and second rescue options have failed." However, any operation to lighten the load of ships would not begin before Monday, according to SCA sources.

5. According to Bloomberg, the boat was traveling at speeds of 25 kilometers per hour in the 12 minutes before it ran aground, well above the canal's maximum speed limit.
'Usually the faster you go, the deeper the bow,' said Mr. Girard, a captain who sailed the Suez Canal every month and has nearly a decade of experience in the industry. 'That's where things can go wrong.'
Carriers had to stop their service because of the blockage of the Suez Canal.
As a result, spot freight rates for containers from Asia to Europe will soar again.
Shipowners said a prolonged rescue operation could affect freight rates across all sections.

According to Russian news agency, quoted by bloomberg reported that the satellite's container ships stranded on the Suez Canal, the goods traffic blocked, leading to the sea freight prices soaring, reported that due to the ship ran aground, a 40 ft container from China to Europe transportation price rise to nearly $8000 (RMB 52328), increased nearly three times from a year ago.

A number of major shipping companies have begun diverting their ships around the Horn of Good Hope, no doubt a forced move that would add nearly 8,000 kilometers and nine to 14 days to the journey between Asia and Europe (at an average cost of $470,000). Shipping companies are considering levying a surcharge on ships diverted across Africa to cover the extra cost of bunker fuel consumed during an extra seven to 10 days of shipping.

Christoph Baumeister, senior trade manager for Asia and Europe at Flexport, said the closure of the Suez Canal "puts even more pressure on an already strained supply chain";
Shipping companies are already taking cargo around the Cape of Good Hope, which will add at least seven days of extra shipping time.
An increase in rates is likely this week, but once the congestion is over, as many ships arrive at the port at the same time, congestion will be inevitable.
IHS Markit business daily also said that according to the planned timetable, 49 container ships carrying 407,500TEU will pass through the Suez Canal in both directions in the seven days after the Ever Given ran aground on Wednesday.
After the ship is rescued, a large number of container ships will arrive in Europe's major hubs, which will put pressure on port facilities and inland infrastructure.
"Currently, in Asia-Europe trade, all vessels available to shipping companies have been arranged and ship utilisation has reached 100 per cent as demand from European importers remains strong.
At the same time, European docks are facing Labour shortages due to social restrictions, new closures and increased infection rates."
Greg Knowler, editor at IHS Markit.

"Next, European ports will be hit by a surge in container volumes that will overwhelm terminal handling capacity," said Knowler. The ports of Rotterdam and Antwerp expect longer waiting times for ships to enter, longer times to dispatch ships and clear containers from storage yards, and longer wait times for companies to pick up goods. This will lead to a further deterioration of the carrier's on-time performance."

However, in the case of the FBX on Friday, the Asia-Nordic index fell 2.3 per cent last week to $7,501 /FTU;
Mediterranean fell 6% to $7,503 per FTU.
According to the Ningbo Container Freight Index (NCFI), the demand for transportation between Europe and China is on the rise. Delays in several flights have reduced the actual capacity of Europe and China. The overall shipping space is very tight and the market freight rates are at a high level.
Ships from Asia to Europe are "tightening" again, suggesting rates will rise this week regardless of the Suez crisis.
Meanwhile, on the Trans-Pacific route, consumer demand, buoyed by the distribution of $1,400 stimulus checks, has remained unabated, pushing up rates and forcing BCO to accept higher annual contract pricing from carriers.
Last week, the Baltic Weekly Index (FBX) showed a 17 per cent rise in spot rates from Asia to the western US to $4,909 per 40ft, although rates for the eastern US rose slightly to $5,735 per 40ft.

The blockage of the Suez Canal will affect shipping services from Asia to the US as shippers scramble to book space on those routes.
"Demand continues to surge as we enter the final weeks of the contract season," said Jon Monroe of Jon Monroe Consulting, a Washington-based firm.
"Carriers normally start a blank trip at this time of year, but they don't need to this year;
Cabin space is at a premium and now everyone is willing to pay for it."
"The Suez Canal is a key bottleneck in global trade."
"If the ship can start again quickly, the impact will be minimised," says Samir Madani, who tracks Tanker Trackers, a website that tracks shipping.
Any prolonged blockage would have serious consequences in terms of oil prices and in terms of driving up shipping costs and forcing more cargo ships to divert around Africa, "he said.
In a research note, JP Morgan noted that if other vessels bypass the Cape of Good Hope, the voyage time could increase by 10 days, which would increase fuel costs, but more importantly, the shipping industry's port congestion/tight supply situation could worsen, which could lead to another increase in spot rates given squeezed demand.