Canal Crisis Will Lead To UK Shop Price Rises
As rescuers attempt to move the ship, the Suez Canal Crisis will lead to price increases in UK stores. Today was the first time the cargo ship Ever Given had moved since being trapped in the Suez Canal. The ray of hope arrived five days after the disaster shut down a critical shipping lane and threw the global economy into chaos.
On Tuesday, a 985-foot-wide segment of the canal linking the Red Sea and the Mediterranean became wedged on both banks, trapping the Taiwanese-owned 1,300-foot vessel. As attempts to dislodge the vessel stranded in the Suez Canal accelerated, British citizens are now facing months of price spikes and supply problems just as shops are due to reopen. Experts have cautioned that the “phenomenal effect” of the stuck Ever Provided would be felt for “months” and that shoppers may face difficulties obtaining items ranging from screws to garden furniture.
In the northeastern Egyptian city of Ismailiya, a woman walks with her children in front of the Taiwan-owned MV ‘Ever Given.’ (Photo courtesy of Getty Images) Continue reading… Articles Related to This Continue reading… Articles Related to This
Meanwhile, a security expert told the Sunday Mirror that the damage caused by the blockade could inspire terrorists to keep global trade hostage. Dredgers have removed 20,000 tonnes of sand, and 14 tugboats were deployed today to use high tides to push the Taiwaese-owned 400m vessel.
However, at a press conference, Suez Canal Authority lieutenant general Osama Rabie acknowledged that it was unable to provide a timeline for when it would be dislodged. According to shipping expert Lars Jensen, there is “no escaping the ripple effect” of the blockade, which has resulted in traffic jams for over 321 ships in the Red Sea and losses of $9 billion a day.
Aerial view of ships lost in the Red Sea as seen from the porthole of a passenger aircraft. (Photo courtesy of Getty Images) Among the cargo onboard the ships stranded in the Red Sea is livestock, furniture, garments, manufacturing components, automobile parts, and building materials.
“Even if the canal opened tomorrow, it would trigger months of shipping delays,” said Mr Jensen, chief executive of Sea-Intelligence Consulting builders merchants sussex . For businesses and retailers alike, this is important. “It will reopen at some stage, and when it does, it will be like ketchup out of a bottle.” Europe typically receives about 50,000 containers a day, with ports able to accommodate much of the volume. Suddenly, a large amount of freight will arrive at the same time, causing ports to become congested. This is something that ports won’t be able to accommodate. Once all of the cargo has been removed from the ships, moving it by truck and rail would be a challenge. The video is currently loading. The video is currently unavailable. To start the game, simply click the button below. To begin, press the play button on your keyboard.
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“The longer it takes to remove the blockage, the more severe it becomes.” According to security expert Professor Anthony Glees, the Ever Given and its auxiliary ships are “sitting targets for rocket attacks from Islamists and anti-Egyptian activists.”
“It is destabilising in and of itself, but it can also offer terrorists ideas,” a specialist in intelligence-led security policies and practises said.
By subscribing to our newsletter, you’ll never miss a moment. He mentioned that he has “no question” that UK defence chiefs are on “high alert” as a result of the incident, adding, “I’d expect a COBRA crisis meeting on Monday if the ship is still stuck, with SAS possibly deployed to further guard the bottleneck.”
On Tuesday, the huge ship, which is the length of four football fields, got trapped in a 985-foot-wide segment of the waterway. The ship was driven sideways by high winds in a sandstorm, according to the owners, and wedged into both banks. Bernhard Schulte Shipmanagement, the ship’s technical boss, announced plans to drain water from the ship’s interior spaces.
If current attempts fail, hundreds of containers will be removed from the ship by crane to lighten it, according to Peter Berdowski, CEO of Boskalis, the company hired to extract the Ever Given.
Some ships have changed their course to circumnavigate Africa via the Cape of Good Hope, but this can take up to ten days longer and result in additional shipping costs and delays.
According to Mr. Jensen, the blockage would increase freight prices and freight weight times, making life “difficult for businesses.” Covid had already put a strain on the shipping industry, resulting in vessel shortages, empty container pile-ups, and freight costs that had increased “five-fold,” he said.
A diagram depicting the moment the ship became stuck (Image: vesselfinder.Com)
“After a year of shipping problems, retailers would not welcome the additional disruption caused by the Suez blockade,” said Andrew Opie, director of food and sustainability for the BRC.
He believes that food imports will be unaffected, but that supplies from the Far East could be, as goods are rerouted through longer routes.
Last night, British retailers were preparing for the fallout ahead of the reopening of stores on April 12 following months of lockout closures.
The Cotswold Company, a homewares company, said it is currently stuck in traffic with £1.7 million worth of furniture in about 100 containers.
A Homebase representative said the company is keeping a “close eye on the situation” and that there will be a “tiny number of product delays,” but that it is working with suppliers across Europe to ensure consumers have what they need.
“At this point, we are not aware of any particular products affected by the blockage,” John Newcomb, CEO of the Builders Merchants Federation, told Reuters, “but, of course, the longer it goes on without resolution, the more likely it is that imported building materials such as screws and fixings, equipment, plumbing parts, sanitary-ware, and shower enclosures will be affected.”
Companies that depend on products going through the Canal, such as the car industry, are “likely to be affected,” according to the British Standards Institution.
“Industries that rely more heavily on just-in-time supply chain models, such as the automotive industry, can see greater impacts,” BSI Practice Director for Security and Resilience Tony Pelli cautioned. Since a significant volume of oil is also transported via the Canal, it could result in higher oil prices for European consumers.” The “ripple effects” of the disaster, he said, would take a few weeks for customers to feel.
This article was written by a merchant company content researcher. It is a merchant production company and a Estate marketing agency headquartered in the United kingdom that serves clients all over the world.