Suez Canal is free now

After almost a week finally the shipping traffic of Egypt’s Suez Canal has been resumed after a blockade by long Ever Given.

The 400-metre (430-yard) long Ever Given became jammed diagonally across a southern section of the canal in high winds early last Tuesday, halting traffic on the shortest shipping route between Europe and Asia.

Live footage on a local television station showed the ship surrounded by tug boats moving slowly in the centre of the canal. The station, ExtraNews, said the ship was moving at a speed of 1.5 knots.

“Admiral Osama Rabie, the Chairman of the Suez Canal Authority (SCA), announces the resumption of maritime traffic in the Suez Canal after the Authority successfully rescues and floats the giant Panamanian container ship EVER GIVEN,” a statement from the SCA said.

“She’s free,” an official involved in the salvage operation said.

After dredging and excavation work over the weekend, rescue workers from the Suez Canal Authority (SCA) and a team from Dutch firm Smit Salvage succeeded in partially refloating her early on Monday using tug boats, two marine and shipping sources said.

Evergreen Line, which is leasing the Ever Given, confirmed the ship had been successfully refloated and said it would be repositioned and inspected for seaworthiness.

At least 369 vessels are waiting to transit the canal, including dozens of container ships, bulk carriers, oil tankers and liquefied natural gas (LNG) or liquefied petroleum gas (LPG) vessels, SCA Chairman Osama Rabie said.

The SCA has said it can accelerate convoys through the canal once the Ever Given is freed. “We will not waste one second,” Rabie told Egyptian state television.

At keast 369 vessels are waiting to transit the canal. Officials have said it will take around 3 days to clear the backlog. 

He said it could take from two-and-a-half to three days to clear the backlog, and the canal source said more than 100 ships would be able to enter the channel daily. Shipping group Maersk said the knock-on disruptions to global shipping could take weeks or months to unravel.

Egyptian President Abdel Fattah al-Sisi, who had not publicly commented on the blockage, said Egypt had ended the crisis and assured resumption of trade through the canal.

Oil prices were about one percent lower at $63.95 a barrel. Shares of Taiwan-listed Evergreen Marine Corp – the vessel’s lessor – rose 1.75%.

About 15% of world shipping traffic transits the Suez Canal, which is an important source of foreign currency revenue for Egypt. The stoppage is costing the canal $14-$15 million a day.

Shipping rates for oil product tankers nearly doubled after the ship became stranded, and the blockage has disrupted global supply chains, threatening costly delays for companies already dealing with COVID-19 restrictions.

Maersk was among shippers rerouting cargoes around the Cape of Good Hope, adding up to two weeks to journeys and extra fuel costs.

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