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Allianz study: Suez Canal blockade costs six to ten billion dollars every week

2021-03-26T13:31:57.504Z


The "Ever Given" accident in the Suez Canal has far-reaching consequences for the global economy. According to a study by Allianz, the damage adds up to five to ten billion dollars - every week.


Enlarge image

Traffic jam at the entrance to the Suez Canal: Little hope of a quick solution

Photo: KHALED ELFIQI / EPA

The Munich Allianz group fears that the ongoing blockade of the Suez Canal by the "Ever Given" will cost six to ten billion dollars every week.

The interruptions in the supply chains that have persisted since the beginning of the year (e.g. in the case of containers or semiconductors) could slow growth significantly.

The delivery times are therefore currently longer than in the pandemic year 2020.

Allianz currently expects world trade to grow by 7.9 percent this year.

In the second quarter, however, there could be distortions due to the delivery problems.

Industry is also alarmed.

"Maritime supply chains between Asia and Europe that are already stalling are threatening to come to a complete standstill," said Holger Lösch, the vice-general manager of the Federation of German Industries, on Friday.

A diversion of the ships around Africa takes a week longer and is extremely expensive.

"Even a one-week delay is problematic, especially for branches of industry with just-in-time production, such as the automotive industry," explained Lösch.

With this production strategy, parts only arrive at the plant at the point in time when they are to be processed.

"As soon as the blockade is resolved, traffic jams will come to Europe's ports," the BDI continued.

Even before the blockade, container shipping from China to Europe had slowed down.

The "Ever Given" has been stuck in the Suez Canal since Tuesday and blocked the entire waterway.

Despite ongoing efforts by tugs and other equipment, there has been no progress in releasing the huge container ship.

The next attempt should be made in the evening, announced the shipping and logistics company GAC on its website.

According to the Suez Canal Authority, a dredger is currently sucking up 15,000 to 20,000 cubic meters of sand.

The Egyptian authority is supported by a company from the Netherlands and, according to its own information, also wants to work with the USA.

Countries like Turkey and Great Britain also offered support.

However, the Dutch salvage company Boskalis assumes that it will not be possible to uncover the ship within a short period of time, as a company spokesman for the Dutch agency ANP said.

Previously it was reported that the owner was planning to expose it at the weekend.

The Suez Canal is one of the busiest shipping routes in the world.

More than 200 ships are now stowed there in both directions.

bah / mik / Reuters / dpa

Source: spiegel

All business articles on 2021-03-26

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