Drama last month in the Suez Canal as Evergreen cargo ship gets stuck between both bays. The Suez canal is very important to the trade industry among countries and the blockade didn’t help with the world economy. The cargo ship stuck is one of the largest ships in the world, weighing over 200,000 tons. The ship sat stuck between both bays in the canal, while many other ships were left with the decision to either wait it out or go the long way around Africa. The ship was stuck for nearly six days and was holding up trade valued at over nine billion dollars per day.
After heavy winds from a sandstorm, the Evergreen cargo ship was lodged between both sides of the Suez Canal. The canal is very important and about 12% of total global trade goes through the canal. For the canal to be shut down this long, it is very problematic for the future of global trade temporarily and the impact will be felt for months. The blockage is affecting the flow of oil, chemicals, apparel, iron ore, and manufactured goods. These important goods being undelivered have started negatively impacting the destination of the products as well as delivery time.
Gas is one of the most important products that go through the canal. Russia, Saudi Arabia, and Iran all export their precious natural resource through the canal, and with it being shut down for so long, the prices are bound to rise. In Georgia, the average price of gas is $2.70 per gallon. Within the weeks after the incident prices have gone up to 12.7 cents per gallon and are expected to rise tremendously over the next month. Not only are gas consumers are affected by this, but the whole industry is on its heels after six days without getting any transport through the canal.
Not just gas goes through the canal, other natural resources like wood and ore are also expected to go up in price. You may notice at grocery stores that different items have gone up a little bit in price. Robert Tuttle of Bloomberg states, “Among other goods, 54.1 million tons of cereal passed through the canal” The strange domino effect that this global trade halt has is super significant and specific.
All around the world, prices of various items have gone up only because a container ship was blown off course by a dust storm. A single dust storm caused mass panic for six days and is still wreaking havoc on gas and cereal prices. A small inconvenience caused mass panic about global trade. Little things across the globe are affecting the cereal prices in Roswell. The Suez Canal is ever so slightly balancing part of the world’s global trade on its shoulders.