The Ever Given shipping container that is blocking the Suez Canal is holding up an estimated $400 million an hour in global trade, according to data from Lloyd’s List.
Lloyd’s values the Suez Canal’s westbound traffic at $5.1 billion and eastbound traffic at $4.5 billion a day. And the current blockage is further stressing an already strained global supply chain.
The Suez Canal, which separates Africa from Asia, is one of the busiest trade routes in the world, with approximately 12% of total global trade moving through it. Energy exports such as liquified natural gas, crude oil, and refined oil make up 5% to 10% of global shipments.
The rest of the traffic through the Suez Canal is largely comprised of consumer products ranging from clothing and furniture to automotive parts and exercise equipment.
The Suez Canal had provided some relief for global importers as they increasingly relied on it last year to avoid massive congestion at West Coast ports in the U.S. that added days, if not weeks, to some deliveries from Asia.
According to BIMCO, the largest of the international shipping associations that represents shipowners, the bottleneck will only continue to grow and impact global supply chains until the Ever Given is dislodged and shipping can resume through the Suez Canal.
According to the World Shipping Council, the Suez Canal’s daily vessel throughput capacity is 106. If the canal is closed for two days, it will then take two additional days after re-opening to clear the backlog.
