The Suez Canal is currently capturing the world’s attention, after the traffic in it stopped, due to the delinquency of a huge container ship while crossing the new branch of the canal, as part of the southern convoy on its journey coming from China, bound for the Dutch city of Rotterdam.
The severe storm, which hit the country last Tuesday morning, caused the crew of the Evergiven Panamanian ship to become invisible, with winds reaching 40 knots, which made the crew lose control of it, hit the bottom, and veered off course.
A long column of 185 ships, loaded with thousands of tons of petroleum, grains, and other goods, formed around the waterway of the canal, according to Bloomberg, in addition to dozens of containers stopping in the Mediterranean, which led to a decline in global trade movement, as the Egyptian Canal acquired 10 % To 12% of the volume of international trade flows, according to data from the Suez Canal Authority.
The rescue efforts, which continued for the third day in a row, did not succeed in disqualifying the ship loaded with about 224 thousand tons of oil and other products, despite the use of 8 gigantic locomotives, the largest of which reached about 160 tons, which dampens the hopes of international shipping companies, which seem to be You will have to resort to the more difficult option, which is to pass around Africa through the Cape of Good Hope Road, and the high cost it carries, according to experts.
What does the Suez Canal stop oil shipments mean?
1.74 million barrels per day out of 39.2 million barrels per day of imported crude oil by the sea used the Suez Canal in 2020, according to the company, “Kepler”, for tanker traffic data.
Crude oil and refined products flow in both directions in the 193 km long Suez Canal. In 2020, Europe imported 550,000 barrels per day of crude from sources east of Suez, most of it through the canal, according to Kepler’s figures.
South and East Asia imports through the canal reached 1.27 million barrels per day in June 2020, but deliveries subsequently declined to 310,000 barrels per day in November.
9%, or 1.54 million barrels per day, of global refined product imports, crossed the Suez Canal last year, according to Kepler. Naphtha, a feedstock for the plastics industry, makes up a large portion of the refined product supply that uses the canal.
Two distillate tankers loaded with diesel and aviation fuel were waiting for Thursday to sail towards the Mediterranean, while two tankers were waiting for Nafta to set sail east.