Suez canal fiasco could disrupt commercial supply for months

Part of the ship Ever Given released: what is missing now?

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London (CNN Business) -

The 400-meter-long container ship, which had been blocking the Suez Canal for nearly a week, has been released, clearing the way for hundreds of waiting vessels to begin moving down the vital commercial artery.

But that doesn't mean the crisis is over for companies that depend on timely deliveries of raw materials, parts and products.

Even before Ever Given ran aground, supply chains were stretched to the limit, making it much more expensive to transport goods around the world and causing a shortage of everything from stationary bikes to cheese.

There are now 367 ships, including 35 oil tankers and 96 container ships, waiting to use the canal.

When traffic starts moving again, it will take days to fix the backlog, further delaying products on their way to customers.

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A 224,000-ton Panamanian-flagged ship was trapped in the Suez Canal, blocking one of the busiest waterways in the world.

(Credit: Suez Canal Authority / HO / AFP via Getty Images) Look at the gallery →

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The Ever Given, a container ship almost as long as the Empire State Building, ran aground on March 23 after being caught in 40-knot winds and a sandstorm that caused poor visibility and poor navigation, the Suez Canal Authority said. (SCA).

The first attempts to free the ship were unsuccessful.

(Credit: Suez Canal Authority / HO / AFP via Getty Images)

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The Ever Given is 400 meters long and 59 meters wide.

Stranded, it blocks traffic in both directions through the key shipping channel.

This photo shows Lieutenant General Ossama Rabei, head of the Suez Canal Authority, at the scene.

(Credit: Suez Canal Authority / HO / AFP via Getty Images)

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Dozens of vessels are stagnant and have not been able to cross the Suez Canal due to the moored ship.

This image from March 25, 2021 shows ships that had entered from the side of the Gulf of Suez and were waiting at the Great Bitter Lake in Egypt.

(Credit: Cnes 2021, Distribution Airbus)

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Dozens of vessels, including other large container ships, tankers carrying oil and gas, and bulk vessels carrying grain, have jammed at both ends of the canal to create one of the worst transportation jams seen in years.

(Credit: Cnes 2021, Distribution Airbus DS. LOCATION)

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Approximately 30% of the world's shipping container volume transits the 193-kilometer Suez Canal daily and approximately 12% of total global trade for all merchandise.

(Credit: Cnes 2021, Distribution Airbus DS. LOCATION)

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Moving the ship and unblocking the track could take "days or weeks," said Peter Berdowski, chief executive of Boskalis, whose sister company SMIT salvage is now working to free the ship.

(Credit: Cnes 2021, Distribution Airbus DS. LOCATION)

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A Suez Canal official told CNN that re-floating the huge ship is "technically very complicated" and could take days.

(Credit: Suez Canal Authority / HO / AFP via Getty Images)

IKEA told CNN Business last week that the lockdown could "create restrictions on our supply chain," depending on how long it takes to release Ever Given.

"We can confirm that there are containers with IKEA products on ships that are waiting to make the passage and resume their course to destinations through the Suez Canal," a company spokesperson told CNN Business.

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"We will consider all available supply options to ensure the availability of our products," added the spokesperson.

Maersk, the world's largest container shipping company, has three vessels trapped in the canal and another 29 waiting to enter.

More are expected to arrive this Monday.

The company has already redirected 15 ships around the Cape of Good Hope, in the southern tip of Africa, adding days and costs to their trips.

Maersk said it could take six or more days to clear the backlog of ships in the canal after the Ever Given is released, depending on safety and other factors.

And the knock-on effects for business will last much longer.

“Even by the time the channel reopens [this Monday], the ripple effects on global capacity and equipment are significant and the lockdown has already led to a number of additional disruptions and delays in global shipping that could take weeks, possibly months, to get rid of, ”the company said.

Suez Canal