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How the Ever Given Blocked the Suez Canal in 2021

KatyEpisode 19 of The Economics of Everyday Life6 min

Six days, four hundred million dollars an hour of world trade frozen, and one very small digger against a very large ship.

Transcript

Katy

Four hundred million dollars an hour. That's the rate at which world trade stopped moving on the morning of March twenty-third, twenty twenty-one. And at the foot of the thing causing it, there's a yellow excavator with a twenty-eight-year-old man inside.

Theo

The photo. Everyone saw that photo.

Katy

Everyone saw that photo. Hold on to him, because the story ends with him... and it does not end how you'd think. Seven forty in the morning. Sandstorm across the Egyptian desert, winds around forty knots. A ship four hundred metres long is moving through a channel that at that point is about two hundred and sixty-five metres wide.

Theo

So the ship is longer than the canal is wide.

Katy

Considerably. The Ever Given. Panama-flagged, Japanese-owned, operated by Evergreen, fifth in a northbound convoy, twenty thousand containers, Malaysia to Rotterdam. Then the steering goes, the bow swings, and she plants herself diagonally across the waterway.

Theo

Okay, but canals get blocked. Why does THIS become the most famous traffic jam in history?

Katy

Because about twelve percent of all global trade goes through that one ditch. Around fifty ships a day. Lloyd's List put a number on the stopped goods... roughly nine point six billion dollars a day.

Theo

A day.

Katy

Clothes, furniture, car parts, crude oil. Just sitting there.

Theo

That's the GDP of a small country evaporating while everyone stands around looking at a boat.

Katy

And that's what people missed. It looked like slapstick. It was a stress test of the entire system we buy everything through.

Theo

So who do you even call? Is there a giant ship removal service?

Katy

There sort of is. The owners hired Smit Salvage, part of the Dutch firm Boskalis. Their chief executive, Peter Berdowski, went on Dutch television and said the quiet part out loud. He called the Ever Given an enormous beached whale, and said freeing her could take days... even weeks.

Theo

Weeks. At four hundred million an hour.

Katy

The canal's about twenty-five metres deep in the middle, but it shelves up fast at the sides, and she was dug into both banks. Tugs alone wouldn't do it. You're talking about pumping out fuel and ballast, maybe lifting containers off, in the middle of the desert, with no cranes nearby.

Theo

Which brings us back to the digger.

Katy

Which brings us back to the digger. The Suez Canal Authority released that picture on March twenty-fifth. One excavator at the foot of a wall of steel, looking like a toy. The man inside is called Abdullah Abdul-Gawad.

Theo

And the internet immediately made him a meme. The digger was everyone's to-do list, or their coping mechanism...

Katy

One of them labelled the ship as my cellulite and the digger as a cup of green tea. He saw those. He told Insider he didn't find them funny. He said he was a little bit upset, that it felt like the world was laughing at his work... and that it made him more determined, because he wanted people to say, he did it.

Theo

Oof. That reframes the whole joke.

Katy

He'd been phoned and told, we need you in a car right now, you're the only excavator driver close enough. Twenty-one hour days. Three hours of sleep a night. One night, one hour. And he was frightened. He told Insider he was terrified the ship might list too far to one side... while he was underneath it.

Theo

Right. The funny picture is also a man standing under two hundred thousand tonnes that could fall on him.

Katy

In the end it took twenty-seven thousand cubic metres of sand dug out, fourteen tugs, Egyptian, Dutch and Italian, and the high tides. She came free at five past three in the afternoon on March twenty-ninth. Six days and seven hours.

Theo

And everything goes back to normal.

Katy

Four hundred and twenty-two ships were queued at both ends. The canal normally does fifty transits a day. They pushed past a hundred, and the backlog kept cascading onto ships that hadn't even arrived yet. Allianz reckoned the closure may have shaved global trade growth by nought point two to nought point four percentage points. For the year.

Theo

From one week. Of one ship.

Katy

And here's the part that's pure Money Mysteries. She got out of the canal... and then didn't get to leave. Egypt parked her in the Great Bitter Lake and effectively held her as collateral.

Theo

They impounded a container ship?

Katy

The Suez Canal Authority demanded nine hundred and sixteen million dollars. Salvage, lost revenue, reputational damage. It came down publicly to five hundred and fifty million. An Egyptian appeals court said it didn't even have jurisdiction and bounced it to a lower court.

Theo

Meanwhile the crew are sitting in a lake inside a legal argument.

Katy

For months. A settlement came in July. And the official cause of the grounding? Inconclusive. The wind was blamed, then the authority said the wind wasn't the main reason. One person died during the salvage.

Theo

So nobody ever fully agreed on why it happened.

Katy

No. But here's what it taught anyone who buys anything. Your sofa is cheap because it travelled on a ship the size of the Empire State Building lying down, through a hundred-and-twenty-mile channel with no spare lane. Efficiency and fragility are the same sentence read from different ends.

Theo

And Abdullah? Did he get paid?

Katy

Nine days after the ship floated, he told Insider he was still waiting on his overtime. The canal authority then said on Facebook that he'd been paid, plus a bonus.

Theo

Four hundred million an hour.

Katy

And the story ends with one man chasing an overtime slip.

Sources

Katy researched this episode from these sources.

  1. 2021 Suez Canal obstruction - Wikipedia
  2. The costs of maritime supply chain disruptions: The case of the Suez Canal blockage by the 'Ever Given' megaship - ScienceDirect
  3. Suez blockage is holding up $9.6bn of goods a day (BBC data via Daily Mirror)
  4. It 'Might Take Weeks' To Free Ship Stuck In Suez Canal, Salvage Company Says - NPR
  5. The guy driving the Suez Canal excavator says he got by on 3 hours of sleep a night - Insider
  6. The guy driving the Suez Canal excavator didn't like becoming a meme star - Insider
  7. Suez Canal bosses say the excavator operator is getting his overtime pay, plus a bonus - Insider
  8. Suez Canal's Claim Over Once-Stuck Ship Referred by Court - AP via Transport Topics
  9. Owners, Insurers Reach Settlement to Release Ever Given - Claims Journal
  10. 'It's like a beached whale': Efforts to dislodge ship stuck in Suez Canal - Irish Times