Egypt's average loss of Suez Canal blockage hits $52M in 4 days

CAIRO – 29 March 2021: Egypt’s average loss of revenues from the Suez Canal blockage logs around $52 million in four days, representing the period of trials to refloat the Panamanian container ship ‘EVER GIVEN’.

The EVER GIVEN ship, which is 400 meters long and 59 meters wide, ran aground on March 23 due to bad weather and sandstorm, pushing the Suez Canal Authority on March 25 to announce the suspension of maritime trade after the ship with 18,300 containers onboard with a capacity of 224,000 tons has wedged diagonally across the canal at 151km of the canal.

On March 29, Egypt’s Suez Canal Authority (SCA), announced that the Panamanian container ship ‘EVER GIVEN’ has been successfully refloated, as a result of successful push and tow maneuvers which led to the restoration of 80% of the vessel’s direction; with the stern 102 m. away from the bank of the Canal now instead of 4 m. prior to the refloating.

Head of the Suez Canal Authority, Lieutenant-General Osama Rabie stated that Egypt’s average daily loss due to the blockage of the Suez Canal hits $ 13 million.

Revenues of Suez Canal have developed over the years to hit $5.81 billion during fiscal year (FY) of 2019/2020, up from $5.05 billion during  2010/2011, according to data from the Central Bank of Egypt (CBE).

During the past 10 years, revenues recorded $5.21 billion in FY 2011/2012, downing to $5.03 billion in 2012/2013 before rebounding to $5.37 billion in 2013/2014.

In FY 2014/2015, revenues reached $5.36 billion. They dipped to $5.15 billion in FY 2015/2016.

“Egypt’s revenues registered $4.95 billion, $5.71 billion, and $5.73 billion in FYs 2016/2017, 2017/2018, and 2018/2019,” the data showed.

As for the revenues during the first quarter of current fiscal year 2020/2021, they reached $1.38 billion.

From a wider perspective, the Suez Canal’s daily capacity represents 160 containers. “$9.6 billion is the worth of cargos passing the Canal daily.”

The data showed that 12 percent of the global trade, 4.4 percent of imported crude oil by the sea, and 9 percent of global refined products passing through the Canal daily.

The blockage of the Canal resulted in the awaiting of about 321 vessels in the Suez Canal.

According to Official Spokesperson, George Safwat, Suez Canal Authority Maneuvers are set to be resumed once more during high tide at 11:30 a.m.; as it shall reach 2 m., allowing for the full restoration of the vessel’s direction so it is positioned in the middle of the navigable waterway.

Admiral Rabie, reassured the international navigation society as navigation shall be resumed immediately upon the complete restoration of the vessel’s direction and directing it to the Bitter Lakes waiting area for technical inspection.

He also commended the efforts of the SCA workers who achieved this ‘heroic feat’ saying that they have done their patriotic duty impeccably and that in all certainty work will be complete very soon.