Suez Canal unblocked, is world trade too?

Global shipping continues to suffer from the blockage of the Suez Canal by container ship Ever Given in March, reports Nikkei Asia. Ports around the world continue to clear cargo congestion, exacerbated by disruptions caused by the coronavirus pandemic.

Since the Ever Given accident in late March, container freight rates have increased by more than 10%, which has forced companies to use air freight, which is much more expensive, and rail freight, which is much slower.

As a result, global supply chains are still disrupted - emphasises the Japanese portal.

A container ship, flying the Panamanian flag and operated by Taiwanese company Evergreen Marine Corp., wedged in an important waterway on March 23, causing significant disruption to global traffic by blocking over 400 vessels before being finally removed six days later.

One of the largest container ships in the world, Ever Given is being held on the Great Bitter Lake between two sections of the canal in a dispute with Japanese vessel leasing company Shoei Kisen Kaisha Ltd.

An Egyptian court on Tuesday rejected Shoei Kisen's appeal and agreed to further confiscate the ship over a dispute over the amount of damages to be paid by the owner. Channel authorities are demanding $ 916 million.

The Indian crew of 26, who are still on board, may be very concerned about this, as there are no signs yet that an agreement will be reached between Egypt and the owners of Ever Given anytime soon. If no agreement is reached, the crew can get stuck on the ship for years.

Occasionally, crew members remain trapped on ships due to international maritime disputes.

The Guardian detailed the fate of the seaman Mohammad Aisha, who has been guarding the ship alone for two years in the Gulf of Suez, just 80 km south of where Ever Given is currently being held. He can only stay on land for two hours to get food and water, or to charge his phone.

Channel authorities are investigating the cause of the ship running aground, but have yet to announce the results.