Mega Container Ship Grounded in Suez Canal... Shipping Operations Disrupted (Comprehensive)

One of the World's Largest Container Ships Runs Aground... Egyptian Authorities Attempting Normalization Using Tugboats and More

[Asia Economy Reporter Yoo Je-hoon] Ships are experiencing navigation disruptions due to a mega container ship grounding accident in the Suez Canal, the world's largest canal in Egypt. Since the Suez Canal is a major route connecting Asia and Europe, significant confusion in logistics transportation is expected.

According to major foreign media including Bloomberg on the 23rd (local time), the Panama-flagged mega container ship "Ever Given" ran aground on a sandbar and stopped around 7:40 a.m. near the northern part of the Suez Canal.

The vessel is one of the world's largest container ships with a width of 59m, length of 400m, and a capacity of 220,000 tons. Its owner is Japan's Shoei Kisen, and the charterer is Taiwan's Evergreen Marine. The ship was reportedly en route from China to Rotterdam.

The Suez Canal is the shortest route from Asia to Europe without passing around Africa's Cape of Good Hope, stretching approximately 193 km. The Egyptian government expanded the canal's width to 317m through an expansion project in 2016, but due to the recent trend of larger mega container ships, the canal remains relatively narrow, resulting in long waiting times.

The Ever Given, which stopped, reportedly has its bow stuck on one embankment and its stern almost resting on the opposite embankment. As a result, ships heading from Asia to Europe as well as those moving in the opposite direction are waiting near the canal. The Wall Street Journal (WSJ) reported that at least 100 ships are waiting due to this accident.

With the Suez Canal, a major artery connecting Europe and Asia, blocked, some are concerned about disruptions in the logistics market. As of last year, about 19,000 ships passed through the canal, accounting for 12% of global trade volume, making it a global logistics artery. If the accident recovery is prolonged, a worldwide logistics crisis could arise.

In response, the Egyptian government is working to remove the ship using tugboats and heavy equipment such as excavators, but progress has been difficult. The Egyptian authorities hope the tugboats will refloat the ship and estimate that the operation will take at least two days, according to the Associated Press.