A backlog of tankers is building up and will lead to delays in both the loading and discharge of new cargoes, disrupting global supply chains. Fitch Solutions states that an estimated 5% - 10% of global trade for crude, petroleum products, and LNG are carried along the canal.
Fitch Solutions believes that despite disruptions caused by the blocking of the Suez Canal, any impact on oil prices will be short-lived as the market should able to absorb the disruption in the near term.
The canal was blocked after the container ship Ever Given, owned and operated by Taiwan’s Evergreen Marine, ran aground, with efforts to dislodge it so far failing as of Fitch Solutions’ report dated March 26.
