![[줌인] Shipping companies reviewing the 9000km bypass route in the Suez Canal crisis](https://image.chosun.com/sitedata/image/202103/26/2021032601188_0.png "[줌인] Shipping companies reviewing the 9000km bypass route in the Suez Canal crisis")
Input 2021.03.26 11:40 | Revision 2021.03.26 11:44
Ship owners lost 70 million won a day due to delays in ship operation
Oil prices skyrocket due to the closure of the Suez Canal… WTI 5.92%↑
As the Suez Canal linking Europe and Asia is blocked, more and more shipping companies are considering bypassing the Cape of Good Hope at the southern tip of Africa.
According to Bloomberg on the 25th (local time), Musk, the world’s largest Danish shipping company, issued a statement that day, saying, “We are considering all alternatives, including via the Hope Peak.” “Important and time-sensitive cargo can be transported by air.” Said.
Germany’s Hapagroud said, “We are closely monitoring the impact of the Suez Canal crisis on transportation services, and are currently looking for ships that can bypass the Cape of Good Hope.” Another Danish shipbuilder Tom said that customers have begun inquiring about the additional costs incurred if they take the Cape of Good Hope bypass.
After passing the Cape of Good Hope in South Africa, it travels about 9000 km more than when passing through the Suez Canal. The time required also increases significantly from 11 to 16 hours to 11 days when passing through the Suez Canal. In the case of a large tanker, the fuel cost alone can cost over 300,000 dollars (about 340 million won).
Marine freight rates such as fuel and labor costs are inevitably rising, but shipping companies believe that they are more tolerable than damage caused by delays in transportation. If the ship’s operation is delayed by one day, the shipowner is known to lose $60,000 (about 70 million won), that is, $3,000 to $4,000 (about 34 to 45 million won) per hour.
The cause of the accident has not yet been identified. For now, the weight is on explaining that the larger the ship, the more powerful winds can lose control when passing through a narrow waterway, and that the ship tilted due to the bank effect of the stern leaning toward the embankment when passing through the waterway.
SCA aims to lift the ship as quickly as possible by putting in eight tugboats and an excavator. However, it is unclear whether the work will proceed as quickly as expected, as the ship is so large and part of the hull is embedded in the sandbar. In 2016, a similar accident occurred and traffic was suspended for two days, but at the time the accident vessel was half the size of the Evergiven.
Bloomberg picks the best time for the salvage on the 28th to 29th, when the tide is at its peak, and predicts that the Suez Canal will cease for at least a week. The Wall Street Journal (WSJ) points out that if the lifting fails, the container may have to be unloaded to lower the weight of the ship. At this time, it may take several weeks for traffic to resume.
Experts believe that the accident could seriously damage supply chains around the world. This is because about 12% of the world’s trade volume goes through the Suez Canal. As of last year, about 19,000 ships, an average of 51 ships per day, passed through the canal.
Bloomberg said, “If the Suez Canal is blocked, not only goods but also energy transportation such as crude oil and natural gas will be disrupted.” WSJ was concerned that “the already severe semiconductor supply crunch in the automobile and computer industry could be exacerbated by the Suez Canal paralysis.” He said that if the supply shortage prolongs, the recovery of the economy may be delayed.
Reflecting these concerns, international oil prices also skyrocketed. On that day, the Western Texas crude oil (WTI) for delivery in May on the New York Commercial Exchange rose to $61.34 during the intraday. The closing price rose 5.92% to $61.18 per barrel compared to the previous trading day. On the London ICE Futures Exchange, the May Brent oil ended at $64.25, a 5.57% increase per barrel.