Evergreen ship blocking Suez Canal could cost $40bn in trade disruption: Russell
An Evergreen container ship bound for Rotterdam that is currently blocking the Suez Canal could cause more than $40 billion dollars of trade disruption, according to analysis from Russell, the technology and consulting firm.
The 220,000-tonne, 400-meter long container ship, registered in Panama, originated in Yantian and is carrying goods believed to be worth $89 million. The flow of goods between Yantian and Rotterdam is around $40 billion per year.
The retail sector has a particularly large exposure, Russell said, with the Evergreen container ship carrying clothing items with an estimated value of $4 million. The wider potential disruption caused by delayed shipments will impact technology and automotive companies such as Huawei, Airbus and Fiat Chrysler, Russell added, which export electronic equipment from to Rotterdam from Yantian.
Suki Basi, managing director at Russell, said: "The disruption highlights that global trade has become dependent on these mega ships and how any disruption in trade routes can leave many organisations and their re/insurers significantly exposed to business interruption risks. Coming on top of the global pandemic and recent disruptions to global auto production caused by other events, this latest blockage shows that insurers and their risk partners increasingly need to follow the money when assessing their underlying connected trade risks."
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