• 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 blocked: all you need to know about the 'Ever Given' accident


Robert Tollast
  • English
  • Arabic

For more than 48 hours, a huge container ship blocked one of the world's most important trading routes, leading to a backlog of hundreds of ships off the Egyptian coast.

On Tuesday at 7.30am, the Panama-flagged Ever Given ran aground in the narrow Suez Canal after being buffeted by wind, the Taiwan-based Evergreen Line, the time charterer of the vessel, said.

That blocked the path of 12 per cent of global trade, as hundreds of ships backed up in both directions.

It was a calamity that could deepen concerns over the growing size of so-called megaships, some of which are already too large to navigate major shipping channels such as the Panama Canal.

But if there was a risk of it getting stuck, why was the ship in the canal in the first place?

And what might happen to global trade? Here’s what you need to know:

How important is the Suez Canal?

The Suez Canal, dug more than 150 years ago, is one of the world's most important trade routes.

Originally the dream project of Napoleon Bonaparte, the French emperor's vision became reality only in 1859 – nearly 40 years after his death – through the combined efforts of French diplomat Ferdinand de Lesseps and Said Pasha, son of Egyptian viceroy Mohammed Ali Pasha.

Today, nearly 19,000 ships, or an average of 51.5 ships a day, pass through the canal with a net tonnage of 1.17 billion in 2020 alone, according to the Suez Canal Authority.

It also carries about 12 per cent of the world trade volume, and tariffs paid by ships entering the waterway are a major source of hard currency in Egypt.

Before the coronavirus pandemic, tariffs brought in $5.8 billion for the Egyptian government in 2019.

Without the canal, shipping journeys between Asia and Europe would take weeks longer, with vessels being forced to sail around the Cape of Good Hope at the southernmost point of Africa.

That adds 5,600 kilometres to any journey.

In some cases, shipping operators seeking to avoid canal tariffs take this option, but a big factor in this decision is fuel prices, elevated during the global pandemic.

Originally eight metres deep, the canal was expanded significantly in 2015 to allow for two vessels to pass side-by-side in opposite directions and it was dredged to a depth of 24 metres.

How did the Ever Given get stuck?

"It's not easy to get stuck if everything is functioning mechanically," Capt Tim Preston, a former British Merchant Navy tanker captain who worked extensively in the Arabian Gulf and Middle East region, told The National.

But the Ever Given appears to have been caught in a perfect storm of problems.

Forty-knot winds (74kph) buffeted the ship, according to the Suez Canal Authority.

“She operates like a huge sail with the containers on board,” said Dean Mikkelson, a maritime security analyst.

“These types of events generally do not happen, hardly ever,” he said. “There is normally a pilot on board that guides them through the canal.”

The National
The National

Capt Preston said that mechanical or communication problems could be the root issue.

“There are several reasons one can get stuck. Firstly, a mechanical or steering failure on the vessel or another vessel in the convoy. It could also be bad communications, for example, a multilingual crew and an Egyptian pilot not understanding each other, and wrong action taken on a given order,” he said.

He said that in some places, failure to pay bribes can make things worse.

“Gifts are still expected to be given to the pilot and linemen, if not this can reduce the level of co-operation, he said.

Have ships run aground in the Suez Canal before?

As a result of the 2015 expansion, groundings like the Ever Given are unusual events – especially given the ship blocked the canal at almost 90°.

But this is not the first time ships encountered trouble there.

In 2015, two ships – the Danish-flagged Susan Maersk and the Liberian-flagged Margret Oldendorff – ran aground in dense fog, reportedly after colliding.

But in that case, traffic was halted for only a few hours.

Before then, the 93,000 tonne Hong Kong-flagged Okal King Dor also ran aground, blocking the canal.

But tugs were able to move the ship within hours, as has been the case on numerous other occasions.

At 220,000 tonnes, moving the Ever Given presented a significant challenge – one of the largest ships of its kind in the world, it is classed as an Ultra Large container ship capable of carrying 20,000 shipping containers.

Common container ship sizes in the Panamax and post Panamax class can carry between 5,000 and 10,000 containers.

Compounding the problem, the ship's reported loss of electricity could also take some time to fix.

How long has the Ever Given been stuck?

Egypt has a huge fleet of tugs and dredgers run by the Suez Canal Authority and in the past, ships that ran aground were moved within hours.

But moving a 220,000-tonne-displacement ship such as the Ever Given is much more difficult.

When the USS Enterprise ran aground off San Francisco in 1983 it took nine tugs six hours; the aircraft carrier weighed 90,000 tonnes.

With the Ever Given, at least eight tugs, as well as ground excavators, worked to partially get the ship refloated. But that's as far as the dredgers were able to go. Now, dredgers are likely going to have to wait until the next high tide to try moving the ship again. Rescuers have said the operation could take until Wednesday.

The Suez canal has since been shut down, forcing ships not already delayed in the canal to reroute, impacting the global economy. To make matters worse, authorities are now anticipating that moving the massive cargo ship could in fact take weeks.

"There have been no reports of injuries, pollution or cargo damage and initial investigations rule out any mechanical or engine failure as a cause of the grounding," Bernhard Schulte Shipmanagement, which is the technical manager of the Ever Given, said in a statement.

Suez Canal through the years

  • The Liberia-flagged container ship RDO Concord sailing through Egypt's Suez Canal near Ismailia on the 150th anniversary of the canal's inauguration. AFP
    The Liberia-flagged container ship RDO Concord sailing through Egypt's Suez Canal near Ismailia on the 150th anniversary of the canal's inauguration. AFP
  • A container ship sails through the new section of the Suez Canal in the Egyptian port city of Ismailia, 135km northeast of the caital Cairo on October 10, 2019. AFP
    A container ship sails through the new section of the Suez Canal in the Egyptian port city of Ismailia, 135km northeast of the caital Cairo on October 10, 2019. AFP
  • Malaysia-flagged oil tanker Bunga Kasturi sailing through Egypt's Suez Canal. AFP
    Malaysia-flagged oil tanker Bunga Kasturi sailing through Egypt's Suez Canal. AFP
  • Admiral Osama Rabie, head of the Suez Canal Authority, speaks during an official ceremony commemorating the canal's 150th anniversary on November 17. AFP
    Admiral Osama Rabie, head of the Suez Canal Authority, speaks during an official ceremony commemorating the canal's 150th anniversary on November 17. AFP
  • Portugal-flagged container ship MSC Giulia sailing through Egypt's Suez Canalnear Ismailia on the 150th anniversary of the canal's inauguration. AFP
    Portugal-flagged container ship MSC Giulia sailing through Egypt's Suez Canalnear Ismailia on the 150th anniversary of the canal's inauguration. AFP
  • A container ship sails through the new section of the Suez Canal in the Egyptian port city of Ismailia. AFP
    A container ship sails through the new section of the Suez Canal in the Egyptian port city of Ismailia. AFP
  • A man standing on a boat looks on as a container ship sails through the new section of the Suez Canal. AFP
    A man standing on a boat looks on as a container ship sails through the new section of the Suez Canal. AFP
  • In this file photo taken in 1860s shows the construction of the Suez Canal in Egypt. AFP
    In this file photo taken in 1860s shows the construction of the Suez Canal in Egypt. AFP
  • This file photo taken in November 1869 shows a painting by an unidentified artist shows the inauguration of the Suez Canal in Egypt on November 17, 1869. AFP
    This file photo taken in November 1869 shows a painting by an unidentified artist shows the inauguration of the Suez Canal in Egypt on November 17, 1869. AFP
  • This file photo taken in November 1869 shows the inauguration of the Suez Canal in Egypt. AFP
    This file photo taken in November 1869 shows the inauguration of the Suez Canal in Egypt. AFP
  • This file photo taken in November 1869 shows the inauguration of the Suez Canal in Egypt. AFP
    This file photo taken in November 1869 shows the inauguration of the Suez Canal in Egypt. AFP
  • In this file photo taken on November 10, 1973, Egyptians unload an amphibious vehicle carrying supplies for the Egyptian third army encircled in the Sinai on the Suez Canal, during the Yom Kippur War. AFP
    In this file photo taken on November 10, 1973, Egyptians unload an amphibious vehicle carrying supplies for the Egyptian third army encircled in the Sinai on the Suez Canal, during the Yom Kippur War. AFP
Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

PROFILE OF CURE.FIT

Started: July 2016

Founders: Mukesh Bansal and Ankit Nagori

Based: Bangalore, India

Sector: Health & wellness

Size: 500 employees

Investment: $250 million

Investors: Accel, Oaktree Capital (US); Chiratae Ventures, Epiq Capital, Innoven Capital, Kalaari Capital, Kotak Mahindra Bank, Piramal Group’s Anand Piramal, Pratithi Investment Trust, Ratan Tata (India); and Unilever Ventures (Unilever’s global venture capital arm)

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
  • Submit their request
What are the regulations?
  • Fly it within visual line of sight
  • Never over populated areas
  • Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
  • Users must avoid flying over restricted areas listed on the UAE Drone app
  • Only fly the drone during the day, and never at night
  • Should have a live feed of the drone flight
  • Drones must weigh 5 kg or less
Company%C2%A0profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3ETuhoon%0D%3Cbr%3E%3Cstrong%3EYear%20started%3A%20%3C%2Fstrong%3EJune%202021%0D%3Cbr%3E%3Cstrong%3ECo-founders%3A%20%3C%2Fstrong%3EFares%20Ghandour%2C%20Dr%20Naif%20Almutawa%2C%20Aymane%20Sennoussi%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3ERiyadh%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3Ehealth%20care%0D%3Cbr%3E%3Cstrong%3ESize%3A%20%3C%2Fstrong%3E15%20employees%2C%20%24250%2C000%20in%20revenue%0D%3Cbr%3EI%3Cstrong%3Envestment%20stage%3A%20s%3C%2Fstrong%3Eeed%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EWamda%20Capital%2C%20Nuwa%20Capital%2C%20angel%20investors%3C%2Fp%3E%0A
Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

Specs

Engine: 51.5kW electric motor

Range: 400km

Power: 134bhp

Torque: 175Nm

Price: From Dh98,800

Available: Now

Studying addiction

This month, Dubai Medical College launched the Middle East’s first master's programme in addiction science.

Together with the Erada Centre for Treatment and Rehabilitation, the college offers a two-year master’s course as well as a one-year diploma in the same subject.

The move was announced earlier this year and is part of a new drive to combat drug abuse and increase the region’s capacity for treating drug addiction.