Transit through the pivotal Suez Canal shipping lane has been blocked by the large containership Ever Given since late on March 23
, creating a traffic jam involving more than 100 vessels.
Although the Ever Given
is now fully afloat, according to a statement issued by the Suez Canal Authority
on Monday March 29, it will take another few weeks to clear the canal of the delayed traffic.
Meanwhile, German insurer Allianz said on March 26
that the blockage could cost global trade between $6 billion and $10 billion a week, and reduce annual trade growth by 0.2 to 0.4 percentage points.
The incident came at a time of surging freight rates and acute vessel shortages
in the Asian markets.
The combination of fewer vessels on the water, an imbalance in trade flows to and from China, and competition between cargoes has been responsible for a rapid increase in...