A grounded container ship is reportedly blocking the Suez Canal that will likely add delays and extra costs to an already pressured logistics industry, say executives, exacerbating already tight world supply lines.
The disruption comes on the 120-mile Suez Canal, connecting the Red Sea with the Mediterranean, as global supply lines still trying to recover from the coronavirus pandemic, dealing with a global shortage of computer chips, and adverse weather.
News of the shipping delay is driving oil prices up and shipping stocks down as authorities continue attempting to dislodge a giant vessel blocking traffic on one of the world’s busiest shipping arteries.
The Suez Canal is an essential trade route for tankers carrying oil and natural gas and container ships moving manufactured goods such as clothing, electronics and heavy machinery between Asia and Europe. Some 19,000 vessels crossed the Suez in 2020, according to the Suez Canal Authority.