Suez Canal Blockage Could Cost $6 To $10 Billion In Lost Trade: Study

0

The study by Europe’s biggest insurer also found that each week of immobilisation shaves some 0.2 to 0.4 percentage points off annual trade growth.

Suez Canal Blockage Could Cost $6 To $10 Billion In Lost Trade: Study

The Suez Canal stepped up efforts on Friday to free the giant stuck container ship and end a blockage.



Berlin:

The container ship blocking the Suez Canal could cost global trade $6 billion to $10 billion a week, a study by German insurer Allianz showed on Friday.

The study by Europe’s biggest insurer also found that each week of immobilisation shaves some 0.2 to 0.4 percentage points off annual trade growth.

“The problem is that the Suez Canal blockage is the straw that breaks global trade’s back,” the study’s authors wrote.

“First, suppliers’ delivery times have lengthened since the start of the year and are now longer in Europe than during the peak of the COVID-19 pandemic.”

The length of delivery times in the United States was twice as bad, the study said, as inventories are depleted on expectations that President Joe Biden’s massive stimulus package will boost demand.

The Suez Canal stepped up efforts on Friday to free the giant stuck container ship and end a blockage that has sent shipping rates for fuel tankers soaring and disrupted global supply chains.

(Except for the headline, this story has not been edited by our staff and is published from a syndicated feed.)

LEAVE A REPLY

Please enter your comment!
Please enter your name here

All the data shown above will be stored by www.rajpostexam.com on https://www.rajpostexam.com/. At any point of time, you can contact us and select the data you wish to anonymise or delete so it cannot be linked to your email address any longer. When your data is anonymised or deleted, you will receive an email confirmation. We also use cookies and/or similar technologies to analyse customer behaviour, administer the website, track users' movements, and to collect information about users. This is done in order to personalise and enhance your experience with us. Click here to read our Cookie Policy.