The Evergreen container ship, Ever Given, has been freed from the Suez Canal after the 1,312-foot ship blocked shipping traffic for five days.
The removal of the shipping container means efforts to resume traffic in the Suez Canal are now underway. However, the operation to restore traffic flow through the canal could take weeks, according to the CEO of a dredging company.
Salvage firm Boskalis was hired through SMIT Salvage to rescue Ever Given.
“I am excited to announce that our team of experts, working in close collaboration with the Suez Canal Authority, successfully refloated the Ever Given on 29 March at 15:05 hrs local time (9:05 a.m. ET), thereby making free passage through the Suez Canal possible again,” said Boskalis CEO Peter Berdowski in a press release.
“I’m extremely proud of the outstanding job done by the team on site as well as the many SMIT Salvage and Boskalis colleagues back home to complete this challenging operation under the watchful eye of the world,” he continued. “The time pressure to complete this operation was evident and unprecedented and the result is a true display of our unique capabilities as a dredging and marine services provider.”
The 200,000 metric-ton ship disrupted global trade and cost trade partners billions in delayed shipments. Ever Given became ensnared between the banks of the Suez Canal on March 24 after a combination of human and technical error, in addition to high winds, pushed the ship into an immovable position.
At least 360 ships carrying cars, oil, grain, and other goods are currently stalled at the northern and southern entrances of the canal. An additional 300 ships are currently slated to navigate through the canal over the next two weeks, according to data firm Refinitiv.
However, many ships have diverted to a much longer route around Africa. This course takes weeks longer and comes with the added strain of piracy threats. Some shipping firms have contacted the U.S. Navy requesting additional security to address these concerns.
Cargo ships carrying 10 to 12 percent of all commercial shipping and about 2.5 percent of the world’s oil supply travel through the canal every day. A German insurer told Reuters every week that the blockage continues could cost global trade $6 billion to $10 billion a week.
The blockage could also cause frustrations for consumers, resulting in worsening shipping delays and shortages of toilet paper, coffee, and other goods.
Unpredictable shipping delays, traffic jams, and changes in course are common in global trade management. Adjusting quickly in response to disruption can significantly affect deliveries and revenue for freight forwarders and retailers alike. The crisis in the Suez Canal also exposed the fragility of today’s globalized supply chains to disruptions in specific, strategic trade lanes.
As environmental and geopolitical events continue to accelerate in frequency, organizations must contend with their precarious reliance on certain trade routes and make contingency plans if they happen to slow down or temporarily close.
The Bamboo Rose Global Trade Management (GTM) solution can help partners at each stage of the supply chain react with agility to any shipping changes and delays. Our GTM solution enables trading partners to collaborate, connect, and gain valuable supply chain data to support sourcing, logistics, purchase order management, compliance, and finance activities.
The solution gives organizations end-to-end supply chain visibility from production and port of departure to port of entry and distribution center delivery allowing firms to act with agility and confidence amidst crises.
Ready to digitize global trade management at your organization so you’re ready to handle disruption? Try Bamboo Rose today.