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.”
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
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
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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)
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
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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
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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.