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30 March 2021

How will the blockade of the Suez Canal disrupt world trade?



Shipwreck is a huge problem in world trade. It can take several weeks to release a cargo ship stranded on the Suez Canal, which is one of the busiest transport channels in the world and cannot function properly. So if the blockade is not lifted as soon as possible, what impact will it have? This is an inner story. As one of the largest container ships in the world had an accident due to the heavy weight of the water and became stuck in the Suez Canal in Egypt, shipping was in chaos, causing other cargo ships to lag behind. Egypt has said that Asia and Asia billions of dollars between Europe hope to launch the ship and reopen the channel as soon as possible, but experts are worried. Charles Stratford reported that it may take several weeks for other ships to deviate, which means a longer journey to the destination. It is 400 meters long and weighs 200,000 tons. It is often called the most important maritime area in the world. This is a maritime accident with global consequences. Due to strong winds, the forever container ship was stranded on the Suez Canal on Tuesday, accounting for about 12 percent of world trade through a 93-kilometer canal linking the Red Sea to the Mediterranean and Taiwanese carrier Evergreen Marine Registered. operating in Panama, the ship offers the shortest connection between Asia and Europe. The ship is carrying about 20,000 containers. After the blockade, he sailed from China to the Dutch port city of Rotterdam. The Japanese chief apologized, but said the situation was very difficult. Yes it is. This season, I will tell you that traffic along the Suez Canal has been disrupted due to this incident and local authorities are working hard to resolve the tug problem. However, there is no time to solve this problem. The image, posted on the ship's tracking site, shows the gap of at least 150 Stark ships at the northern entrance to the canal. The harbor is located in the middle of Lake Bitter. At the southern entrance to the sewer, most of the Gulf's oil is shipped to Europe through canals. Oil prices rose sharply on Thursday. Egyptian officials have seized a large amount of cargo and say at least eight tugs are trying to remove the ship. Experts say this can take days or even weeks. It may be necessary to unload the container to reduce the weight of the ship. We are now facing the possibility that we will have to travel thousands of kilometers to the southern tip of Africa, which will incur huge costs and may delay the delivery of goods by a few weeks. Ships stranded across the canal and the northern end are in an unstable position and have been named so that they cannot return and take another route, as long as it is expensive to travel back and forth from Africa and vice versa. The Suez Canal administration said there were about 20,000 ships last year. Ships passing through the canals brought Egypt billions of dollars in tax revenue. Donated things are one of the largest container ships in the world, but every day, every day, they stagnate. People are worried about the financial crisis and the impact on Trafford Al Jazeera's global business opportunities. Let's see why Suez is closed. The Lloyd's List shows that, globally, trade, which accounts for 30% of global container ship traffic, not only generates more waves, but also has 9 hours a day and revenues of US $ 6 billion. Marinari. Traffic is blocked. The canal is an important source of income for the Egyptian economy. Last year, it contributed more than US $ 550 million to the Egyptian economy. Well, let's invite guests from Oxford. Purden, Secretary General of the Doha International Transport Chamber, Mohammed Al masri and Egyptian analyst and associate professor of media and cultural studies at the Doha Graduate School. Former EU Ambassador to Egypt, Jordan and Yemen, Brussels James Moran. Thank you very much for joining us. Let me start with you today. This event shows the extent to which the global supply chain is based on transport and also asks how much influence there is currently on global trade. Well, I think you know, you'll find that you just showed up, but every year 12% of the goods go through the Suez Canal, which means more than a trillion dollars a year. According to your report, there are 10 billion ships every day and so far three days have passed, so you can calculate that number. Now, they still have hundreds of ships anchored in the anchorages, waiting for the canal to cross, ship owners and managers now citing such difficult judgments.

Or now? What route and long distance travel adds another 3 and a half nautical miles and 5 to 12 days of travel, and the delays will cause this, so it's actually big, I think it shows you the Suez Canal in terms of waterways and we should not have some of the most efficient supply chains from Asia to Europe, Muhammad's dependence, how important is the automatic and economically automatic Suez Canal to Egypt. This is critical. You can't stress this too much. That is, this is important for strategic reasons (symbolic reasons). Egypt has often fought to control the Suez Canal, so Egyptians consider it a source of national pride, a source of Nash or a symbol of national independence, but economically, Egypt has brought in more than $ 5 billion. US in revenue. The annual income is due to the Suez Canal, which is the country's main source of foreign exchange. Moreover, this is one of the reasons why the CC became one of the first things he did when he became president in 2014. He announced this large-scale expansion of the Suez Canal. He said you know that the Suez Canal will double or even double More than doubling the revenue of the Suez Canal only highlights the extent to which this is truly vital to the Egyptian economy James. Yes it is always huge. If in fact the ship passing through the Suez Canal is almost as big as the Empire State Building. Well, because they improved the canal a few years ago, they deepened the draft on the waterway, partly because they were able to accommodate these large ships and, of course, the challenge of navigating the canal. If you have done this before, then I have been here many times and you must have a very precise technical field, etc. to make the spaceship pass, especially if the spaceship of this size. Something went wrong or the weather caused technical problems with the ship, which could be caused by the navigation function provided by the Suez Canal authorities. We don't know, but it's a challenge, but he should usually act as the person in the plan, for whom he will eventually be responsible. Obviously, this will be the beginning, and the heart will be the owner of this ship. But in fact, all the staff took part in this trip, I think James just said we still don't know what he actually did wrong. Therefore, we need to establish these facts before we can begin to share responsibilities, but obviously there are many claims that will be included in the list of all the different cargo rights of all late ships. Therefore, there have been a lot of lawsuits. Of course, as you mentioned in the last response of the Egyptian government, Muhammad's serious impact on trade was also Muhammad. He ordered the expansion of the Suez Canal in 2015, but only if everything happened Enough in this expansion. That is, if enough happens, such an accident will happen. I am not an expert in channel technology to explore channel expansion. Therefore, I cannot talk to him, but when I can say, the CC will introduce this as an economic recovery project, and the income in front of me is the income. In 2013, 2014 and 2015, it was slightly higher than 2014. $ 5 billion. USD. For example, their total value of 5 billion US dollars and 5 billion US dollars not only did not double people, but also stagnated in 2020. Revenues reached 5 percentage points and 6 billion US dollars. Therefore, there is actually no income. By 2023, things like $ 13 billion and a half of the CC's commitment will certainly not happen. So this has increased the tension and I think it has contributed to the nature of the political crisis, at least for now, I find it very interesting. Know. What did not go here for an interview, has not yet talked about it, I think James is very surprised. We discussed this in the program. But you know that the Suez Canal provides the Egyptian economy with much-needed foreign cash, which has been troubled for some time. But how serious and unpleasant is this incident for Egypt? What does current trade mean for their economy? Well, we don't know how embarrassing it is, because we've come back to this point, nobody really knows how it happened and we won't know for a while. But at some point, one thing about you seems very important to you. The problem will be solved in the next few days or weeks. There must be a transparent international investigation into what happened. It will be difficult now. As Muhammad said, the Egyptians viewed the Suez Canal in a very special way. As he said, I am a symbol of national independence, and Egypt is a symbol of sovereignty. These things have big problems. However, in order to restore confidence in the operation of local channels, we will need to turn to the international community, including all relevant organizations that monitor. It's embarrassing, we might not understand that person, I see you nodding at what James said there. Do you want to jump in? Yes, I think the most important thing is to conduct a thorough investigation to find out the exact facts and circumstances that happened. This is the only way we can learn our lesson. We may see if there is guilt or failure, but I think that is the most important thing. We don't know what happened. I had a lot of speculation at the time. We know that the ship will soon be stranded on land, and at this point we need to really focus on restarting and reopening this Muhammad canal. What is the wider impact on the region? Well, I think this is beyond the region. Your leadership has a global impact. You talked about how much money could be lost from this channel every day, I just want to emphasize the position of the investigation. I think this will be very important. As an Egyptian, this makes me feel sad. I am Egyptian-American, but it makes me feel sad as an Egyptian, because I have to admit that this investigation has to be international. I can honestly say if I am completely honest about it. I do not believe in the main investigation in Egypt, because this is a government that has once again proved corrupt and once again involved in crimes. For Egyptians and others, this is a joint international investigation and is very important. I also think it is worth noting that this incident took place on the day of the terrible accidental death of a passenger train in Egypt. We must emphasize that the Egyptian government is authoritarian and that authoritarianism has led to corruption and inefficiency. Incompetent and unfortunately, Egypt has become a place of disaster. That's it. Unfortunately, James, where the building collapsed and the train collided, I saw the recent state of the Suez Canal. It seems to me that you are responding to what Muhammad said and you may want to enter. Come on. Well, it doesn't matter what the internal situation is, but you asked about the area. Some people say that this may take precedence over what has happened in recent years. Of course in Europe? However, people have become very concerned because they rely too much on supply chains in the Far East and China. Now, this incident shows how fragile these supply chains can be for the region. Although I will not, I do not say that this will happen. In other words, so-called integration can bring the supply chain closer to home, either back to Europe or back to the Middle East and North Africa because of this incident. Can be encouraged. Although I don't want to be too optimistic. But I think that can be one of the issues that needs to be considered in the long run and it has already started to happen. In particular, China's dependence has reached a stage. Americans in Europe and elsewhere have problems because people think I'm seriously thinking about rebalancing, and this incident may just be one of the other factors accelerating the process. This situation is in fact only a larger contract, which aggravates the problem in the supply chain caused by covid-19, ie how the dependent emic affects the transport. How serious this situation is, I think the first thing is that throughout the pandemic, the ax continues to provide food, medical care and all the fuel that makes the world work, and I think we should thank the sailors. Since China closed in January 2020, the entire industry has been affected in several different ways. This had a significant impact on the types of factory closures and exports of goods, and then we were threatened. Because the country closed its borders, it was impossible to land. They are forbidden to travel. Therefore, your transport industry has proven to be extremely resilient, but it shows that such an example shows how fragile the supply chain is in real development, and we believe that this is a lesson we can learn from Muhammad. This is a pandemic and all the restrictions associated with it actually limit the workload of port workers and truck drivers. This can cause delays and the handling of goods on a global scale. I mean, how is this impact of the world economy? You know, I think this epidemic has obviously been affected. Get to know the world trade workers on a personal and organizational level. Then, at several macro levels of the country, at the state level. I am a state-level country, but what is interesting is that Egypt has not been affected by some of these issues, because it does not follow certain methods that other countries have, for better or worse. Understand the virus and how the government decides to respond to the epidemic in Egypt. You know that it has to be decided by others, but from a purely commercial point of view, Egypt has not been affected by James like other places. Is it clear already? If you use containers, what should be done to reduce the weight of the cargo on board? They will drive us away, no matter how hard it is. And it is obvious if Egypt really has the necessary equipment, I am not an expert in this field. But I think we know that if they have to stop unloading containers from the ship, it will take a considerable amount of time and some special equipment needs to be sent. I think they need a 200-foot elevator to start covering these containers on a regular basis. Obviously, this will be a very slow process. As for whether Egypt has equipment. Keep in mind that at this time the main diving and excavation work was done by a Dutch rescue company, which moved the area near the Suez Canal and I know you are very professional. In fact, when it comes to possible scenarios along the way, I think these are the first ones. By the way, you will not listen to other people, I say it will take weeks instead of at most 72 hours for Muhammad. I saw you nod. Do you want to jump in? Yes, I mean, as he said right now, someone from the Suez Canal authorities came out and said it would be resolved in 48-72 hours, and other international experts said this might be too optimistic. . We have also seen reports that some countries have sent assistance at the last minute or at least are willing to provide assistance. I read the report. Turkey is willing to send one of its large ships to the port, which, according to the port, will help alleviate the problem. Therefore, I think we will pay attention to this in the next few hours and maybe in a few days, more and more countries will have to find alternative transport routes. Now, I think, for example in Russia, there is now speculation that this could be used to develop roots in MC Arctic Roots. What do you think more countries will do? Well, in any case, the Suez Canal is another shortcut to trade between Asia and Europe. So, you know, there is no doubt that chips or stores will continue to use this channel after removing this barrier, because this is just the most cost-effective way to transfer goods, but there is no doubt that these root causes are being pursued. and observed. Absolutely not. Now, on a global scale, some of the effects of global warming can be released by global warming. Some of the more northern routes (but with good chip conditions) are adapting to this situation, this situation will happen here now, if this situation continues for days and weeks, the transport will be adjusted and we will only redirect the supply routes. James, although it will take longer and as a result there will be delays. This is an important sign of all the turbulence. This is because the Japanese shipowner apologized from your point of view. How convincing is this? I think there could be cultural elements in Japan, because you know they handle these things that way and I think it can really cover. It turned out to be a human error related to a technical defect related to the ship. I don't know if we can read more. However, as we have already mentioned, there are many factors here. To restore confidence in the Suez Canal with a reliable route, they must be carefully studied, but, as a real person, it will still be an important element In the next few weeks and months, but the highest level of Egypt or all relevant personnel it must carefully consider how to best solve this problem and not accept certain heuristics. For Egypt, it is important that when Muhammad continues to say what James said, he thinks very, very carefully about the best way to conduct investigations. This is how important it is for Egypt to really conduct thorough investigations. Please refer to the above, they are Egyptian officials. According to the records, all this can be solved in 48-72 hours. I mean, where do you think the shipping company is today? Are you developing an action plan? but? I think it's been a few weeks, because some of them think you know it might actually open in the next 48-72 hours. You know, I don't know, I think maybe some people will read the inner story to understand what we're going to say. I mean, you know, I think people could just wait for needles. I mean, these people, these people know millions of dollars online, but you have these different tests, it may take two or three days, but you may need a few weeks, I think that day, you know that no one really knows, we hope to provide more clarity and answers in the next 24 hours, but as far as I know, for such a large spacecraft, it could crash, which is unprecedented. I'm not sure when this situation will finally happen. Therefore, we are a little on unexplored territory. Apart from all the economic consequences, there is no suitable text player for text players. There are security experts. Who suggested that you probably know that only ships that are stranded in the Red Sea can become subject to taxation, as you know, between the strained relations between Iran and the United States and other countries. Is there anything that worries you? Of course, we realized that we are not too worried now, but I think this may change some things, but in fact, at the last point you pointed out, we know that the company is using their boat. go a long time. As this situation disappears, and more, more companies will make a decision, even if the channel is removed tomorrow, the remaining orders will be deleted, which will take a few days to resolve, so I think when we talk . Of course, even if it crosses the road, there are some security issues there, as the chip will pass through the Gulf of Guinea. We know that it has its own political problems and also involves the Gulf of Aden. Therefore, security is the main priority of the chip. When I make these decisions and take care of the well-being and safety of the crew, my kindness and, of course, James are the same. We have less than a minute left, let me ask you the same question. Are you currently concerned about the safety of these ships? That is, as I said, everyone cares about the safety of the ship, no matter where it is and, on the other hand, they care about the situation. They are in the Red Sea, crossing the bay to the Suez Canal and have controlled the entire creature. Of course, I'm sure the shipping company is like that, but I don't think there's any particular concern about this job, and I agree with the guy's point of view that there could be a greater risk of attacking the south by Popome. Pirates of the coastal areas of East Africa, if the pirates have come a long way and have a long history of pirates, this can be more dangerous than the current pirates of the Red Sea. Okay, we don't have time.