Suez Canal blockage delays about $400 million an hour in goods
Lloyd's values the canal's westbound traffic at roughly $5.1 billion a day, and eastbound traffic at around $4.5 billion a day. The blockage is further stressing an already strained supply chain, said Jon Gold, vice president of supply chain and customs policy for the National Retail Federation to CNBC.
The Suez Canal, which separates Africa from Asia, is one of the busiest trade routes in the world, with approximately 12% of total global trade moving through it. Energy exports like liquefied natural gas, Crude oil, and refined oil make up 5% to 10% of global shipments. The rest of the traffic is largely consumer products ranging from fire pits to clothing, furniture, manufacturing, auto parts and exercise equipment.
An alternative route, around the Cape of Good Hope on the southern tip of Africa, can take two weeks longer (more 9.56 thousand km), It means that the cost of transporting the goods will increase by at least $ 300,000.
On impact on oil prices, about two dozen ships could be seen from the shores of Port Said on Friday morning, according to a Reuters witness.
Oil prices rose over 3% on Friday as more than 30 oil tankers have been waiting on either side of the canal since Tuesday, shipping data on Refinitiv showed.
However, the delays come at a time of low seasonal demand for crude oil and liquefied natural gas (LNG), which will likely mitigate the impact on prices, analysts said.
The Ever Given ran aground on Tuesday as it sailed northwards through the canal on its way from China to the Netherlands with two canal pilots on board.
The blockage is creating long tailbacks in the waterway, with more than 150 vessels currently waiting in the area to pass.
The Japanese owner of the giant cargo ship that has been blocking Egypt's Suez Canal since Tuesday has apologized for the disruption to global trade.
Shoei Kisen Kaisha said it was trying to resolve the situation as soon as possible, but that dislodging the Ever Given was proving extremely difficult.
Evergreen Marine, the Taiwanese firm that operates the ship, said the ship "was suspected of being hit by a sudden strong wind, causing the hull to deviate from waterway".
“Salvage experts are working with the captain and the Suez Canal Authority to design a more effective plan for refloating it.” It added.
