Duke Active

Only the cargo owners of the vessels blocked in the Suez Canal did not joke about the situation in the Suez Canal. According to Bloomberg, approximately 240 vessels – container carriers and tankers – accumulated in the queue at both ends of the “logistics artery” during the blockade. About 12% of world trade passes through Suez. That’s 50 ships every day and about 19,000 a year. Egypt alone lost 13-14 million dollars every day that the canal was down. Lloyd’s List magazine estimates that every hour of downtime costs world trade $400 million. Broken supply chains, stoppage of production, loss of perishable goods – no one will compensate these losses. The end buyer will have to pay for the “$10 billion traffic jam” in Suez. Taking into account the events of last year, the more frequent losses of containers at sea and the situation with Ever Given, we can draw a simple conclusion – cargo insurance in case of force majeure becomes a mandatory condition.