Closure of Suez Canal halts trade worth $9.6 billion a day

The ship container stuck in the Suez Canal, blocking transit in both directions has halted trade worth up to $9.6 billion a day.

The figure is based off an assessment by Lloyd’s List that suggests westbound traffic is worth around $5.1 billion a day and eastbound traffic approximately $4.5 billion.

There are about 185 vessels waiting to transit the waterway, Bloomberg reported.

So far efforts by tugs and diggers to dislodge the 400-meter long Ever Given vessel that became wedged in the canal on Tuesday have failed.

About 50 ships per day use the waterway, and in 2019 containers accounted for around 53% of the transiting tonnage.

Approximately 13 million barrels of crude on 10 tankers could be affected by the disruption, according to Vortexa Senior Freight Analyst Arthur Richier. There are vessels carrying water, cement, clean petroleum products, along with biodiesel, sitting outside Suez.

There were also eight ships carrying livestock.

Just how long it takes to move the ship and clear the gridlock will dictate further impacts on markets. About 300 vessels globally are either stuck in the Suez Canal, waiting to transit the waterway or signalling it as their next destination, according to shipping data.