Suez Canal is Blocked and Stocks Rebound Over the Past Year : Planet Money : The Indicator from Planet Money On Indicators of the week, we discuss the Suez Canal blockage hindering global trade and the stock market recovery since last year's low point.26 Mar 2021
What companies were affected by the Suez Canal blockage?
- Eating and drinking establishments.
- Construction.
- Wholesale trade.
- Chemicals and allied product-related businesses.
- Health services.
- Food retailers.
- Industrial and commercial machinery and equipment.
- Metal production.
How did the Suez Canal affect trade?
The canal's location also makes it a key regional hub for shipping oil and other hydrocarbons. It enables the transfer of an estimated 7-10% of the world's oil and 8% of liquefied natural gas. Approximately one million barrels of oil traverse the Suez daily.18 Apr 2021
Which stock is affected by Suez Canal?
Shares of Evergreen Marine Corporation have gained 28% since March 23, the day the Ever Given ship got stuck in the Suez Canal and triggered an epic traffic jam of more than 400 ships. Evergreen's stock has been climbing since last summer, but saw a significant spike after the canal blockage.13 Apr 2021
What was the impact of the Suez Canal blockage?
While normal traffic has now resumed of the narrow Suez Canal passage, the ship blockage since last Tuesday resulted in massive economic loss — hundreds of ships ferrying cargo worth billions were either stuck in traffic or forced to reroute, causing significant delays in essential shipments.30 Mar 2021
How did the Suez Canal blockage affect trade?
According to a study by Allianz, one of the world's largest insurers, between 23-29 March, each single day the Suez remained blocked could decrease global annual trade growth by 0.2-0.4% and cost USD $6-10 billion and, or the equivalent of USD $400 million per hour. The incident was reflected immediately in markets.18 Apr 2021
Why was the Suez Canal important to British trade?
The Suez Canal was constructed in 1869 allowing faster sea transport to India, which increased Britain's long-standing strategic interest in the Eastern Mediterranean. Britain then established a permanent military presence in Egypt. Protectorates were held over most of the Gulf states by 1900.
How did the Suez Canal affect businesses?
Based on the shipments that were on the affected vessels in and around the Suez Canal, an estimated $54 billion in trade losses have been reported. German insurer Allianz had said in a recent analysis that the blockage could bring down the annual global trade growth by 0.2 to 0.4%.5 Apr 2021