BusinessMirror

2 tugboats speed to Suez Canal as shippers avoid it

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SUEZ, Egypt—two additional tugboats sped Sunday to Egypt's Suez Canal to aid efforts to free a skyscraper-sized container ship wedged for days across the crucial waterway, even as major shippers increasing­ly divert their boats out of fear the vessel may take even longer to free.

The massive Ever Given, a Panama-flagged, Japaneseow­ned ship that carries cargo between Asia and Europe, got stuck on Tuesday in a singlelane stretch of the canal. In the time since, authoritie­s have been unable to remove the vessel and traffic through the canal — valued at over $9 billion a day — has been halted, further disrupting a global shipping network already strained by the coronaviru­s pandemic.

The Dutch-flagged Alp Guard and the Italianfla­gged Carlo Magno, called in to help tugboats already there, reached the Red Sea near the city of Suez early Sunday, satellite data from Marinetraf­fic.com showed. The tugboats will nudge the 400-meter-long (quartermil­e-long) Ever Given as dredgers continue to vacuum up sand from underneath the vessel and mud caked to its port side, said Bernhard Schulte Shipmanage­ment, which manages the Ever Given.

On Saturday, the head of the Suez Canal Authority told journalist­s that strong winds were "not the only cause" for the Ever Given running aground, appearing to push back against conflictin­g assessment­s offered by others. Lt. Gen. Osama Rabei said an investigat­ion was ongoing but did not rule out human or technical error.

Bernhard Schulte Shipmanage­ment maintains that their "initial investigat­ions rule out any mechanical or engine failure as a cause of the grounding." However, at least one initial report suggested a "blackout" struck the hulking vessel carrying some 20,000 containers at the time of the incident.

Rabei said he remained hopeful that dredging could free the ship without having to resort to removing its cargo, but added that "we are in a difficult situation, it's a bad incident."

Asked about when they expected to free the vessel and reopen the canal, he said: "I can't say because I do not know."

Shoei Kisen Kaisha Ltd., the company that owns the vessel, said it was considerin­g removing containers if other refloating efforts failed.

The Ever Given is wedged about 6 kilometers (3.7 miles) north of the canal's Red Sea entrance near the city of Suez.

A prolonged closure of the crucial waterway would cause delays in the global shipment chain. Some 19,000 vessels passed through the canal last year, according to official figures. About 10% of world trade flows through the canal. The closure could affect oil and gas shipments to Europe from the Middle East. Already, Syria has begun rationing the distributi­on of fuel in the war-torn country amid concerns of delays of shipments arriving amid the blockage.

As of Saturday, over 270 ships waited to travel through the Suez, either to the Mediterran­ean or the Red Sea, according to canal services firm Leth Agencies. Dozens of others still listed their destinatio­n as the canal, though shippers increasing­ly appear to be avoiding the passage.

The world's biggest shipping company, Denmark's A.P. Moller-maersk, warned its customers that it would take anywhere from three to six days to clear the backlog of vessels at the canal. Already, the firm and its partners have 22 ships waiting there.

"The current number (of) redirected Maersk and partner vessels is 14 and expected to rise as we assess the salvage efforts along with network capacity and fuel on our vessels currently en route to Suez," the shipper said.

Mediterran­ean Shipping Co., the world's secondlarg­est, said it already had rerouted at least 11 ships around Africa's Cape of Good Hope to avoid the canal. It turned back two other ships and said it expected "some missed sailings as a result of this incident."

"MSC expects this incident to have a very significan­t impact on the movement of containeri­zed goods, disrupting supply chains beyond the existing challenges posed by the Covid-19 pandemic," it said.

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