The large container ship stuck in the Suez Canal has reportedly been refloated raising hopes the waterway will soon open.
The 400 metre Ever Given became wedged in the canal last Tuesday causing chaos for global shipping. Nearly 400 ships are still stuck on either side of the vessel with some companies having to reroute vessels around Africa.
After numerous failed attempts it has now been reported that the ship has been dislodged from the bank of the canal. Reuters reported the Ever Given had been straightened, restarted its engine and was undergoing checks before being moved.
Egypt’s Leth Agencies tweeted the ship had been partially refloated but the Suez Canal Authority is yet to confirm the news.
Around 12 per cent of all shipping passes through the canal so the blockage has wreaked havoc on global supply chains. Shipping rates for oil tankers have nearly doubled since the ship became stranded last week.
Some ships decided to reroute their cargoes around the Cape of Good Hope, adding another two weeks to journeys and extra fuel costs.
News of the movement sent oil prices sharply lower with the price of Brent crude down two per cent to just over $63 a barrel.
Prices have swung wildly in the last few days as traders tried to analyse the impact of the blockage of the essential trade point.
“Oil’s volatile trading is set to continue, and if the Suez Canal situation is correct, oils recovery pre-Opec+ may well be over,” Jeffrey Halley, Oanda’s senior market analyst said. “Given the volatility last week, Brent looks set to move to the lower end of its $60.00 to $65.00 a barrel range.”
Source: CityAM
