• 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, 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
    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
    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
  • 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
    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
    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 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
    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 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
    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
    The ship is shown lodged sideways. AFP
  • All movement in the canal comes to a standstill. 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
  • 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
    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
    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
    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
    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', 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
    This satellite image from Planet Labs shows the cargo ship 'MV Ever Given', grounded in the Suez Canal since Tuesday. AP

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


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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.

Suez
Suez

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.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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