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- The incident in the Suez Canal
Due to the traffic jam in the Suez Canal, ships with more than 10 million barrels of oil are stuck, 26% of which are Russian supplies. The cost of the jammed Russian cargoes is estimated at about $160 million.
On the night of Wednesday, March 24, the Ever Given, an extra-large container ship, ran aground in the southern part of the Suez Canal and completely blocked traffic in both directions. After the Ever Given ran aground, it was swept across the channel by the current, creating a traffic jam of about 100 ships.
- How this incident affects various aspects of the economy
2.1 Coffee delivery failed
The blockage of the Suez Canal threatens the production of instant coffee, according to Bloomberg.
Ships with Robusta cannot pass through the canal. This type of coffee is used to produce Nescafe. The European market will suffer most from the blockage. Coffee of this variety is supplied to EU countries from East Africa and Asia, and it happens exactly through the Suez Canal. Experts assume that it will take a few days to solve the problem, but the blockage has already caused huge damage to the industry.
2.2 Syria reduced fuel supplies due to a ship stuck in the Suez Canal
The Syrian Oil Ministry has decided to reduce fuel supplies due to delays of raw materials caused by a ship stuck in the Suez Canal. This was reported by Reuters.
2.3 Finland predicts a shortage of coffee and pineapple
The representative of the Finnish major food supplier K-group predicted a possible shortage of coffee, pineapple and tuna in the country due to the blockage of the Suez Canal. This was reported by the Helsingin Sanomat newspaper.
According to experts, coffee beans, pineapple and tuna could disappear from the shelves in the country if the situation is not resolved soon. Also, suppliers are forced to think of other, more expensive supply routes, which will undoubtedly lead to an increase in the price of these products.
Meanwhile, Russia saw a good alternative to the Suez Canal. The logistics company Fesco offered to use Russian railroads as an alternative.
Let's not talk about sad things, let's talk about good things.
The 400-meter-long, 59-meter-wide Ever Given Triple E was en route from China to Rotterdam. The technical operator of this container ship, Bernhard Schulte Shipmanagement (BSM), reported that the incident was the result of strong wind gusts.
After reports that the container ship Ever Given managed to be stranded in the Suez Canal, oil began to plummet in price.