Suez Canal Blockage | What it means

With MV Ever Given successfully refloated transit is resuming through the Suez Canal. However, the backlog and disruptions are set to continue for some time before order is restored.

The blockage has already triggered disruptions and backlogs in global shipping that could take many weeks to resolve.

The good news is from the city of Suez ships could be seen exiting the canal into the Red Sea. The hope is for at least 113 of more than the 420 vessels waiting are expected to cross the canal by Tuesday morning. However, the knock-on effect could be as much as a two-week delay to freight services:

  • Most vessels expected to start export voyage from Europe on and around week 14 will be in position at the earliest week 16.
  • Most vessels expected to start export voyage from Asia on and around week 16 will be in position at the earliest week 18.
  • While shipping and logistic services (ACF included) will work hard to accelerate resumption of our typically reliable service, our global schedules and services (EX USA, SAM, SEA and Oceania) could be disrupted for coming 6 to 8 weeks.

The significance of the Suez Canal can’t be underestimated and with global trade interconnected we expect global capacity, equipment and supply chains to be effected in the short to medium term.

This is also likely to cause a sharp rise in storage needs – due to a lack of vessels collecting cargo from the quays. We would therefore kindly advise our terminal partners and customers to engage with us and other logistics providers to pace their deliveries into the export hubs to prevent congestion.

Your supply chain is very important to us, and while these delays are most regrettable, please rest assured that we are doing our utmost to mitigate the impact as best as we can.

At ACF, as a leading freight forwarding provider in Australia, we’re committed to providing our customers with critical trade, freight and cargo updates. Keep checking in for the latest news.