Look Honey! I'm struck.

What is Suez canal?

If you have been living under a rock, or skipped Social science's through middle school, read through.

The Suez Canal’s importance for Egypt

The 150-year-old canal was controlled by British and French interests in its initial years, but was nationalized in 1956 by Egypt’s then leader Gamal Abdel Nasser. Over the years, the canal has been widened and deepened.

In 2015, Egypt announced plans to further expand the Suez Canal, aiming to reduce waiting times and double the number of ships that can use the canal daily by 2023.

As per an AFP report, the canal is a major source of income for Egypt’s economy, with the African country earning $5.61 billion in revenues from it last year.

The Suez Canal is an artificial sea-level waterway in Egypt, connecting the Mediterranean Sea to the Red Sea through the Isthmus of Suez and dividing Africa and Asia.

Constructed by the Suez Canal Company between 1859 and 1869, it officially opened on 17 November 1869. The canal offers watercraft a more direct route between the North Atlantic and northern Indian oceans via the Mediterranean and Red seas, thus avoiding the South Atlantic and southern Indian oceans and reducing the journey distance from the Arabian Sea to London.

In short, it's an very important trade route.

Why is it in the news now?

A ship called Ever Given has blocked the route. (Yes, Its ever given, Not ever green).

Ever Given, a nearly 200-foot-wide, 1,300-foot-long cargo ship sailing under a Panamanian flag.

How you ask?

Well it is just jammed there, its a bit difficult to explain.

The ship has a bulbous bow. The problem is that the bulbous bow got impaled into the shore.

So it has been struck in the way shown below.

What are they doing now to free  the ship?

 As per the report, the Ever Given is the largest vessel to go aground in the Suez Canal.

The Suez Canal Authority (SCA) is now trying to refloat the Ever Given using rescue and tug units, the report said. Diggers are also trying to free the ship from the canal’s bank, where it is lodged.

Experts have said that the effort to remove the ship and make the canal fully functional again could take several days. Since the alternative route between Europe and Asia around Africa is a week slower than the Suez route, a daylong blockage could have a severe impact on global trade.

Small tugboats and excavators trying to push and pull the Ever Given free of the canal's banks.( Fastly becoming a trending meme template).

Will it have an effect on oil prices?

Yes, likely temporary says head of commodities at ING.

(~10% of global seaborne traded oil transits Suez & SUMED . ~9% of LNG.)

Conclusion?

With so many firms offering help. I think it should be cleared within a matter of days.

PS: I absolutely stole these pics from various news sites. I don't have any right over them.

Ciao. 

-pd