Crude oil worth US$400 million halted by Suez Canal blockage, with at least 6.3 million barrels stranded
- Liquefied natural gas, refined fuels and containers full of goods are among the cargo delayed after a huge ship blocked the Suez Canal
- The artificial waterway in Egypt is one of the busiest trade routes in the world, carrying about 12 per cent of global trade by volume
The trade of at least US$400 million of crude oil as well as liquefied natural gas (LNG), refined fuels and containers full of goods have come to a standstill in one of the world’s key shipping routes, with millions of dollars more at risk after a massive container ship ran aground in the Suez Canal on Tuesday.
The Suez Canal Authority (SCA) has deployed seven tug boats to try to refloat the vessel, but their work has been hampered by strong winds and been unsuccessful so far, according to Maritime services group GAC.
At least seven vessels bearing 6.3 million barrels of crude oil have been delayed because of the accident, two northbound behind Ever Given, and five southbound, according to commodities analyst Kpler that tracks bulk goods vessels.
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Giant cargo ship causes marine traffic jam by blocking Egypt’s Suez Canal
Using the Brent crude oil price of about US$64 a barrel as a value proxy – oil prices shot up after the grounding – the seven vessels carry about US$403 million of crude oil. If the Ever Given remains stuck into the weekend, three more vessels carrying 2.5 million barrels of oil, worth about another US$160 million, will join the queue from the south, Kpler said.
