Suez Canal blockage: Maersk halts spot booking, warns of 'disruption' for weeks

Updated : April 01, 2021 03:22 PM IST

Ever Given, the huge container ship that blocked the Suez Canal for six days, was finally refloated earlier this week. But a clear Suez Canal may not make things normal right away as container shipping giant Maersk has suspended spot bookings and warned of "disruption" for weeks to come.

The company expects the impact of the six-day blockage on the global supply chain as it had communicated previously. “We have earlier communicated that even when reopened, the blockage of the Suez Canal would have ripple effects on global supply chains for weeks to come,” Maersk said on its website.

The company has decided to temporarily suspend short term bookings placed via Spot -- Maersk’s online booking platform -- and short-term contracts, it said, "expecting a significant loss in capacity over multiple weeks, depending on market dynamics."

Maersk will continue to accept short-term bookings on other services where the local availability allows. They will issue information as soon as the suspended services are once again ready to be availed on Maersk.com or through any other preferred platform.

The suspension of these services affects all exports out of Asia due to expected equipment shortages.

The suspension includes North American exports to the Middle East and Indian subcontinent and East Africa. Exports from Latin America to the Middle East and Indian subcontinent via the Mediterranean will be hit too.

It also impacts exports from East Africa to Europe, and West Africa to Asia, Middle East and Indian Sub-Continent via the Mediterranean.

Maersk, however, assured that the suspension was only temporary and to ensure existing laden cargo and empty containers could be moved quickly to the areas they are needed immediately.

In total, 163 vessels awaited transit in Suez, 137 vessels in Port Said and six vessels were waiting in the Great Bitter Lakes. "We expect that it will take approximately a week to move the complete queue through the canal, conditional to safety and other operational circumstances," Maersk said in its March 30 update after Ever Given was refloated.

The Ever Given container ship was wedged in the Suez Canal, perhaps the most crucial maritime route in the world, for a week. The ship drew attention from the whole world and was a major cause of concern for the shipping industry.

Published : April 01, 2021 03:22 PM IST

Suez Canal blockage: Maersk halts spot booking, warns of 'disruption' for weeks

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