Suez Canal Blockage Delays Shipments to Australia
One of the largest container ships in the world has been wedged in the Suez Canal, blocking one of the world’s busiest trade routes.
About 12% of global trade passes through the Suez Canal, about 50 vessels daily, which connects the Mediterranean to the Red Sea and is the shortest sea link between Asia and Europe.
The Ever Given is 400 meters long, which has made it difficult to refloat in the 205-metre long canal. Egypt has reopened an older channel to redirect some vessels, but the blockage continues to cause a standstill for more than 50 ships.
Many containers destined for Australia from Europe are received in Asia first, meaning this delay will likely impact Australians.
The impact on Australia is yet to be felt, however the delay on materials has led crude oil prices to rise by 4% on international markets on Wednesday, and industry experts warn that delays on many common goods from Europe will be felt in the coming weeks.
Find more information on international container shipping logistics and trade here.