The Suez Canal Blockage

A timely reminder of how important it is to protect your cargo from the catastrophic moisture damage caused by delays

The grounding of Evergreen’s MV Ever Given in the Suez Canal on Tuesday March 23rd has had knock-on effects right down the supply chain. Shortly after the ship blocked both north and southbound channels of the cannel, dozens of vessels were backed up.

Ever Given is among the very largest container ships in the world. At400-metres (1,300-foot) long and 59 meters (194 feet) wide, the vessel is too large to navigate even the enlarged Panama Canal.

The Suez Canal is one of the world’s most important shipping routes and carries at least 10% of the global maritime trade. Over 50 ships pass along the canal every day.

The 220,000 ton vessel got stuck diagonally across the canal after it went off beam when hit by 40 knot winds and a sandstorm which compromised the ships steering and the crew’s ability to see where they were going. Rescue tugs’ attempts to get the ship back on course were hampered by its sheer size and the gridlock continued to escalate.

The blockage had an almost immediate impact on oil prices which spiked on news of the event, which affected over 13 million barrels. Avoiding the jam would add 15 days to ships’ journey times so hundreds of ships formed the queues at either end of the canal.

The cargo damage risk and resulting costs are potentially huge.

Over half of the ships using the canal are container ships. Whereas shippers with cargo on the Ever Given itself may be worrying about physical damage resulting from the impact, there is another aspect of risk facing all the containers that are caught up in the delays. Moisture Damage!

Container Rain

Temperatures in the desert around the canal can rise and fall dramatically. Those conditions are perfect for container rain. Container rain causes severe moisture damage to both packaging and contents. 10% of all cargo damage is due to moisture damage and the longer ships are being held up, the higher the risk. The resulting cost to businesses globally from this single delay is potentially huge. It’s a clear reminder of the importance of having the correct moisture control solutions inside containers, wherever they are going.

Ships can opt to take the alternative route, which means they have to pass round the southern tip of Africa. This area is famous for for rogue waves and extreme weather conditions. Besides these extreme conditions, your cargo will be at sea for at least two weeks longer. The take away lesson from the recent events at Suez are proof that cargo protection and securing should be configured to prepare for any eventuality.

Protecting your cargo across all modalities and routes

In Australia and across the world (our partner Cordstrap) we together with our customers to design and engineer innovative and dependable solutions that protect cargo across all modalities and routes.

We take a very forensic approach to moisture risks. Cordstrap monitors and gathers data in thousands of smart containers traveling millions of miles. With this intelligence we are able to work with customers to ensure they have the correct Moisture Control product for your specific cargo and route. Our extensive range of Moisture Control products delivers the highest absorption rates currently on the market.

Preventing cargo movement

We take a similarly scientific approach to protecting your cargo from movement damage and have engineered a huge range of cargo protection systems designed to secure any load type on any modality across the world.

CTU Code Compliant and Certified

All our solutions are CTU Code compliant and have earned approval from the world’s leading regulators and insurers including: Germanischer Lloyd, the IMO, Mariterm AB, Eurosafe and the Association of American Railroads (AAR).

Global Network

We are a truly global company with a support network that can work with key people right across your supply chain, in Australia and anywhere across the globe, to ensure they know how to prepare for every eventuality.

To ensure that your cargo is protected from all that the future holds, get in touch with us today and call 07 3491 8209.