'Ever Given' docks in UK four months after Suez Canal debacle

The Ever Given docked at an English port on Tuesday as it concluded the final leg of a disastrous journey in which it blocked the Suez Canal for nearly a week, holding up billions of dollars of global trade.

Hundreds of ship-spotters lined up on the shoreline near Felixstowe on England's Suffolk coast, hoping for a glimpse of the boat.

The 400-metre vessel — which was loaded with 18,300 containers — dropped off much of its cargo at Rotterdam Port last week following a four-month delay.

A representative for the Ever Given's operator said that control of the ship would be handed over to Japanese owner Shoei Kisen Kashai and that the ship would be taken for repairs.

The representative did not disclose what repairs would be needed, but said the ship would be “out of action for some time” as the damage was carefully assessed.

It had originally been scheduled to make an additional stop in Hamburg, Germany, but was rerouted following a safety classification.

Spectators watch as the container ship 'Ever Given' arrives at the Port of Felixstowe, four months later than planned. Bloomberg

The Ever Given ran aground in Egypt's Suez Canal on March 23 after reportedly losing the ability to steer during dusty and windy conditions.

About $9.5 billion worth of cargo was held up as rescuers desperately attempted to dislodge the ship from the vital trade artery that carries 10 per cent of global maritime trade.

Hundreds of ships were delayed as they waited for the canal to be unblocked and some vessels were forced to take the much longer route around the southern tip of Africa.

The 'Ever Given' container ship runs aground in the Suez Canal. Reuters

It was only refloated six days later, after a huge salvage operation in which one employee of the Suez Canal Authority was killed.

The authority held the ship for several weeks following the rescue and demanded the owner pay $550 million in damages.

After protracted negotiations, an undisclosed settlement between the parties was reached and the authority announced that the ship would be released.

Four reasons global stock markets are falling right now

There are many factors worrying investors right now and triggering a rush out of stock markets. Here are four of the biggest:

1. Rising US interest rates

The US Federal Reserve has increased interest rates three times this year in a bid to prevent its buoyant economy from overheating. They now stand at between 2 and 2.25 per cent and markets are pencilling in three more rises next year.

Kim Catechis, manager of the Legg Mason Martin Currie Global Emerging Markets Fund, says US inflation is rising and the Fed will continue to raise rates in 2019. “With inflationary pressures growing, an increasing number of corporates are guiding profitability expectations downwards for 2018 and 2019, citing the negative impact of rising costs.”

At the same time as rates are rising, central bankers in the US and Europe have been ending quantitative easing, bringing the era of cheap money to an end.

2. Stronger dollar

High US rates have driven up the value of the dollar and bond yields, and this is putting pressure on emerging market countries that took advantage of low interest rates to run up trillions in dollar-denominated debt. They have also suffered capital outflows as international investors have switched to the US, driving markets lower. Omar Negyal, portfolio manager of the JP Morgan Global Emerging Markets Income Trust, says this looks like a buying opportunity. “Despite short-term volatility we remain positive about long-term prospects and profitability for emerging markets.”

3. Global trade war

Ritu Vohora, investment director at fund manager M&G, says markets fear that US President Donald Trump’s spat with China will escalate into a full-blown global trade war, with both sides suffering. “The US economy is robust enough to absorb higher input costs now, but this may not be the case as tariffs escalate. However, with a host of factors hitting investor sentiment, this is becoming a stock picker’s market.”

4. Eurozone uncertainty

Europe faces two challenges right now in the shape of Brexit and the new populist government in eurozone member Italy.

Chris Beauchamp, chief market analyst at IG, which has offices in Dubai, says the stand-off between between Rome and Brussels threatens to become much more serious. "As with Brexit, neither side appears willing to step back from the edge, threatening more trouble down the line.”

The European economy may also be slowing, Mr Beauchamp warns. “A four-year low in eurozone manufacturing confidence highlights the fact that producers see a bumpy road ahead, with US-EU trade talks remaining a major question-mark for exporters.”