Suez Canal
Evergreen: Ever given stocked
Almalki Mohammed Hassan
MANAGEMENT SCIENCE DEPARTMENT, Yanbu University college
SCM 325; Logistic management – assig.3
Dr Kang Mun Jr Tan
12 March 2021
1 Introduction
On March 23 of the year 2021, a blocked rode that has been detected in the supply chain at the Suze
Canal. As a report says that there were superbly heavy storms that affected the Suze Canal. In fact, that the
ship "Ever Given" was struck while riding on it so, that has closed the Suze canal for almost five days.
meanwhile, the block in the Suze Canal is a superbly real problem in the local and the global area for the
whole world. it also affects the supply chain’s logistic fulfilment process. So
1.1 Background
The Suez Canal, one of the most vital trade channels in the world,
began in 1869. By 2021, the canal was carrying about fifty ships a day.
The canal is insufficiently large to enable traffic to flow in both
directions simultaneously. The canal is undergoing widening, but
major sections remain single lane. The Canal handles almost 10% of
all foreign maritime trade. According to the SCA, almost 19,000 ships
will pass through the canal in 2020, a total of 51.5 ships every day.
The IMO 9811000 ship Ever Given was laid down on 25 December 2015, launched on 9 May 2018, and
completed on 25 September 2018. The team was entirely comprised of Indian nationals, and no one was
involved in the incident. Shoei Kisen Kaisha, the ship's operators, has insurance compensation of $3.1
billion. Evergreen Marine of Taiwan operates the vessel,
which is owned by Bernhard Schulte Shipmanagement.
Insurers in Japan cover the container ship. However,
sailing through the Suez Canal is defined as a "highly
complicated and dangerous procedure." Wind gusts
allow the container areas of ships to "sail" and thereby
alter the ship's direction. Egypt's government demands
that ships passing through the canal be boarded by an
Egyptian "Suez team."
1.3 Suez Canal incident in March 2021
Ever Given was trapped in a sandstorm while transiting the Suez Canal. The ship ran aground at the 151kilometer (82-mile) level, obstructing both sides of the canal. The team, which was completely composed
of Indian nationals, was accounted for and there were no confirmed casualties. The ship was traveling from
Tanjung Pelepas, Malaysia, to the Port of Rotterdam at the time of the incident.
According to Evert Lataire, head of the maritime technology division at the University of Ghent, the
bank impact, which causes the rude of a ship to shift toward the close coast while operating in a constricted
waterway, may have contributed to the grounding, as well as the lateral forces of west-to-east winds pushing
sideways toward the northbound ship. Since most of the modern ship design is focused on performance and
stability at sea, the effects of hydrodynamics in shallow waters remain somewhat obscure, especially in
view of the growing increasing scale of ships over the last decade.
Ever Given impeded the passage of over 300 vessels, including 41 bulk carriers and 24 crude oil tankers.
The vessels in question weighed about 16.9 million tons (37 billion pounds). Some docked at nearby ports
and anchorages, whilst others stayed stationary. Just two Russian Navy vessels were impacted: the
Steregushchiy-class corvette Stolkey and the Altay-class oiler Kola.
2 Responses
The Suez Canal Authority has entrusted underwater recovery activities to the Dutch firm Royal Boskalis
Westminster. Tugs were required to exert force in order to drive the ship, either by towing or pulling, and
suction dredgers were required to clear sand and silt from under the ship's bow and stern. Pumps with a
large volume had to be used to minimize or redistribute the weight of fuel oil and water ballast. To lift
crates, large floating cranes may be brought in, but this would be a long and challenging process.
To begin, vessels were relocated behind Ever Given to make way for the refloating process. The ship's
fuel and nine thousand tons of ballast water were withdrawn to aid in its lightening. The excavation of the
bow continued with the use of heavy equipment, including an excavator.
The Suez Canal Authority (SCA) suspended navigation through the Suez Canal on 25 March pending
the refloating of Ever Given. On the same day, Egyptian President Abdel Fattah el-advisor Sisi's on seaports
reported that the canal could be cleared in "48–72 hours, maximum." The Suez Canal Authority reported
the following day that its dredging activities were approximately 87 percent successful.
On 26 March, the SCA welcomed an invitation to help with attempts to clear the ship from the water
through a United States Navy appraisal team of dredging experts. On 27 March, 14 tugboats attempted to
dislodge the ship using that day's high tide, and additional tugboats would arrive the next day if the effort
failed. On 28 March, at high tide, any action of the ship's stern and rudder permitted movement. Abdel
Fattah el-Sisi, Egypt's President, has directed that tentative plans be made for lightening the ship's load.
According to the OECD, the event highlighted the importance of investigating supply chain stability and
damage of just-in-time production, which is still experiencing shortages due to COVID-19 pandemic
effects. The events that transpired over the few days the canal was closed demonstrated the challenges
inherent in rescuing larger ships, which need more resources and equipment. By 18:00 UTC on 28 March,
the ship had been shifted 17 meters (56 ft) to the north and could be able to slip away from the current
location, considering the fact that high tides and winds complicate rescue attempts. The canal was blocked
for several days, stranding about 300 ships at both ends and in the canal's center, with some entering and
some diverting their paths
If Ever Provided had needed the presence of floating cranes to lift any crates, the operation may have
required bigger machinery to operate over a longer period of time, extending the blockage by "days, if not
weeks." Although the ship's bow had been
partially pushed away from the sea, it stayed
trapped at the canal's edge. As of 15:05 local
time, the vessel was eventually released and
towed to the Great Bitter Lake for inspection.
On 31 March, the canal authority notified
shipping companies that it will inspect the
ship for harm and interview the crew to
ascertain the ultimate cause of the grounding.
Meanwhile, about 400 ships waited in the
Red Sea: approximately 200 in the Red Sea,
less than 200 in the Mediterranean Sea, and
approximately 50 in the Mediterranean Sea.
The backlog of ships delayed by the
blockades was removed on 3 April, and the
ship was inspected by the SCA's lead
investigator.
3 the impact of the incident on logistics management at the local level
The Suez Canal is one of five sustainable outlets of Egyptian national revenue, which totals more than
$5.6 billion annually. Foreign housing and sectoral emergencies, tourism, travel and entertainment, and
crisis lines. The canal's revenue reliability is a result of the canal being one of the most popular and safest
waterways for ships and containers, the primary mode of shipping produces and goods to different market
At a period when the canal closure event has global ramifications, especially in Europe. At a period when
fear and uncertainty regarding the origin of the pandemic are increasing, Egyptian attempts, in collaboration
with foreign experts and a Dutch rescue group, are underway to float and draw the pandemic container to
reopen navigation. Meanwhile, and considering concerns over the length of time needed to float and drag
the stranded tanker through the canal's width, several companies and countries have begun diverting ships
transporting their goods to the Cape of Good Hope, notwithstanding the fact that cutting its way takes an
additional week to ten days compared to the Suez Canal, resulting in a 30 to 40 percent increase in
transportation and insurance costs.
Along with the Cape of Good Hope, numerous outlets announced that a range of customers are going to
Russia to move their products from East Asia to Europe via the port of Vladivostok and Russian railways.
And, with the increase in temperatures over this timeframe and the usage of icebreakers to allow the
movement of ships and cargo carriers, there are more ways to use the North Sea for shipping than ever
before.
In view of this, Egypt's immediate future must see the canal's decline in significance as a matter of time,
as road transport through some of the latest Silk Road corridors being built in the coming years would be
less costly than via the Suez Canal. This suggests that these passages would erode the Suez Canal's value,
just as the Cape of Good Hope path did after the canal's construction and service in the second half of the
nineteenth century.
Lastly, the Arab world, along with Europe and Turkey, will also be impacted, as China has been the
largest or one of the largest suppliers to the markets of North African and Eastern Mediterranean countries,
with prices varying from 10% in Morocco to more than 18% in Egypt. The Gulf states export a significant
amount of oil and liquefied natural gas via the canal. It is estimated that it transports between one and a
million and a half million barrels of oil per day to the market.
4 the impact of logistic fulfilment process
In term of the fulfillment process, along with supply chain and logistic the response of companies will
decrease. In other word, the reflect will be on the future due to a lot of companies going through “the cope
of good hope”. As a result, this will decrease the availabilities somewhere. however, this delay could lead
to uncertainty in supply chain and could reflect on demand. The demand of a product might change in term
of weekdays and years. So, a delay on a shipment means shortage of demand reflection.
5 the affection in supply chain management at the local area and worldwide
5.1 inventory
In inventory management, Ever Given's crises have an impact on stock levels in industries, distribution,
and supermarkets, among others. Meanwhile, the method of stocking goods would remain unestablished
throughout this time period. Also, as measure, the first element that would be impacted is lead time. Even
if we extend our lead time, there would be a shortage for some companies. As a result, consumer frustration
increased. Therefore, the businesses represented by the stock would suffer a loss of reputation in the
availability competition.
5.2 transportation
Numerous businesses have been impacted by these disasters. And both of
these firms will face difficulties in adjusting the style of shipping until they
become aware of the crises. Although ships are the slowest form of transport,
some businesses have shifted to air or rail to reduce lengthy delays.
Additionally, to stop traffic on the Suze channel, where both ships are stocked
and others are unable to travel at all.
5.3 warehouses
The aim of shipping is to satisfy DC in order to then satisfy consumer needs. And the crises obliterate
this mechanism for about 30% of global exchange. Additionally, these can result in poor response rates to
orders and negative customer experiences. In general, the EVER GIVEN has decreased the efficiency and
effectiveness of distribution centers in a wide variety of locations in the world.
Conclusion
On March 23 of the year 2021, a blocked rode that has been detected in the supply chain at the Suze
Canal. The ship "Ever Given" was struck while riding on it so, that has closed the canal for almost five days.
Ever Given became stuck in a sandstorm during his passage via the Suez Canal. The ship grounded at
the 151-kilometer (82-mile) mark, obstructing the canal on both sides. The unit, which was entirely made
up of Indian nationals, was accounted for, and no reported injuries occurred. The ships weighted about
16.9 million tons (37 billion pounds) Although others anchored in neighboring ports and anchorages, some
remained stationary. Just two Russian Navy vessels were damaged: the corvette Stolkey of the
Steregushchiy class and the oiler Kola of the Altay class.
Suez Canal is one of five sustainable income streams for Egypt, which generates more than $5.6 billion
annually. The canal's revenue stability is due to its popularity and safety as a waterway for ships and
containers. Road transport through some of the newly constructed Silk Road corridors in the coming years
will be less expensive than via the Suez Canal. The canal is used by the Gulf states to transport a
considerable volume of oil and liquefied natural gas. Arab countries, as well as Europe and Turkey, would
be affected.
In inventory management, Ever Given's crises have an impact on stock levels in industries, distribution,
and supermarkets. The crises obliterate this mechanism for about 30% of global exchange. Ever Given has
decreased the efficiency and effectiveness of distribution centers in a wide variety of locations.
References:
-
(2021 Suez Canal obstruction - Wikipedia, 2021)
(Suez Canal: Efforts to dislodge Ever Given unsuccessful - What's next? | Africanews, 2021