Suez Canal: blockage could cost $10bn a week as ship re-float attempt fails

Container vessel faces a fifth day blocking the vital waterway

The stranded container ship Ever Given, one of the world's largest container ships, after it ran aground in Suez Canal, Egypt. Reuters

The stranded container ship Ever Given after it ran aground in Suez Canal. Reuters

A tugboat by the Panama-flagged MV Ever Given container ship. AFP

Tugboats by the Panama-flagged MV Ever Given. AFP

Tugboats by the Panama-flagged MV Ever Given. AFP

The Ever Given container ship which ran aground in the Suez Canal, Egypt. EPA

Ever Given container ship is pictured in Suez Canal in this Maxar Technologies satellite image. Reuters

A view of the earth moving equipment excavating sand near the bow of the Ever Given container ship in Suez Canal in this Maxar Technologies satellite image. Reuters

A view of the dredging operations which continue near the Ever Given container ship in Suez Canal in this Maxar Technologies satellite image. Reuters

Egyptian officials oversee the operation to free Taiwan-owned cargo MV Ever Given after it become stuck in the Suez Canal. AFP

Egyptian officials oversee the operation to free Taiwan-owned cargo MV Ever Given after it become stuck in the Suez Canal. AFP

Egyptian tug boats try to free the ship. AFP

Egyptian tug boats try to free the ship. AFP

Egyptian tug boats try to free the ship. AFP

The ship is shown lodged sideways. AFP

All movement in the canal comes to a standstill. AFP

A satellite image of the Ever Given. AP

A satellite image of the Ever Given. AP

Stranded container ship Ever Given, one of the world's largest container ships, is seen after it ran aground, in Suez Canal, Egypt in this still image taken from a video. Reuters

Egypt's Suez Canal authorities are redirecting shipping traffic on Wednesday after a 200,000-tonne container ship 'MV Ever Given' ran aground and blocked the canal's main channel. Reuters

Recovery teams are surveying the 'MV Ever Given', which ran aground in the Suez Canal on Tuesday as it headed for the Mediterranean after leaving the Red Sea. Its destination is Rotterdam in the Netherlands. Reuters

Lt Gen Osama Rabei, head of the Suez Canal Authority, second right, assesses the 'MV Ever Given' from the bridge of a cutter. AP Photo

This satellite image from Planet Labs shows the cargo ship 'MV Ever Given', stuck in the Suez Canal. AP Photo

This satellite image from Planet Labs shows the cargo ship 'MV Ever Given', grounded in the Suez Canal since Tuesday. AP

An attempt to refloat the stranded mega-vessel blocking the Suez Canal failed, the ship's technical manager Bernhard Schulte Shipmanagement (BSM) said on Friday.

The Panama-flagged Ever Given ran aground in the narrow canal on Tuesday morning after being hit by strong winds, the charterer of the vessel, Evergreen Maritime, said.

Satellite photos distributed by the canal authority show Ever Given's bow touching the eastern wall, while its stern appears to be lodged against the western wall.

Two attempts to refloat the huge boat failed. BSM said the rescue team had confirmed that two additional tugs will arrive on March 28 to assist in refloating the Ever Given, as it approaches its fifth day blocking the vital waterway.

The canal was closed on Thursday to allow rescue teams to try to free the 400-metre, 200,000-tonne container ship.

Dutch company Smit Salvage and Japan’s Nippon Salvage have been hired to assist in the refloating.

The Ever Given is the heaviest vessel that Smit Salvage has faced in its nearly 180-year history.

Capt Nicolas Sloane, a maritime salvage expert who led the high-profile effort to salvage the cruise ship Costa Concordia in 2012, said extracting the Ever Given is "quite a challenge" and could take five days to a week.

The Suez Canal Authority did not comment on the work or give any indication of when traffic could resume.

Hundreds of ships are waiting to pass through the closed canal, with some choosing to take a much longer route around the continent of Africa.

6.3 million barrels of oil stranded 

Data company Refinitiv said a further 100 boats are on their way to the closed canal. Data intelligence company Kpler said 10 crude oil tankers were awaiting entry to the canal, carrying oil and oil products from Kazakhstan, Russia, Libya, Azerbaijan and the North Sea.

At least 6.3 million barrels of oil are stranded in the canal, Kpler said.

The effect of delays has doubled shipping costs for oil-related products since the ship ran aground on Tuesday, experts said.

The blockage could cost global trade $6 billion to $10 billion a week, a study by German insurer Allianz showed on Friday.

"The problem is that the Suez Canal blockage is the straw that breaks global trade's back," the study's authors wrote.

"First, suppliers' delivery times have lengthened since the start of the year and are now longer in Europe than during the peak of the Covid-19 pandemic."

A further statement from Evergreen Marine said the costs of freeing the vessel and repair were the owner’s responsibility.