The Ever Given: When International Shipping is Compromised
There have been plenty of incidents in global logistics over the years. From cargo theft to truck crashes, anything can go wrong during freight shipping. And they do add up: supply chain disruptions cost the logistics industry more than $12 billion a year, with a single incident setting an average company back $680,000.
However, there have been incidents that have had a bigger impact than just inconveniencing the supply chain: they could grind the global economy to a halt.
Such is the case of the Ever Given, one of the largest shipping container ships in the world. In March 2021, the Ever Given became stuck in the Suez Canal, a crucial shipping route in Egypt, due to adverse weather and poor communication, causing a week-long disruption to global trade.
When international shipping is compromised by major events like the grounding of the Ever Given, shippers can easily panic. However, learning from these experiences can help prevent future occurrences or enable better coping strategies when they arise.
How it Happened
The Ever Given is an enormous G-class container ship; one of the biggest in the world, in fact. At about 400 m (1,312 ft) long and 60 m (193 ft) wide, she has a gross tonnage of 220,949 and a container capacity of 20,124 TEU. The ship is owned by Japanese ship leasing company Shoei Kisen Kaisha, Ltd., and operated by shipping company Evergreen Marine in Taiwan.
The Ever Given was en route from Tanjung Pelepas, Malaysia, to Rotterdam, the Netherlands, on March 23, 2021. To get to Rotterdam, the ship passed through the Suez Canal in Egypt, which allows ships to reach Europe without circumnavigating Africa. The ship joined a convoy that would travel together through the Suez for the 12-hour, 193.3 km (120 miles) trip.
As the ship entered the canal, strong winds raised dust, reducing visibility. The crew of the Ever Given struggled to maintain control, causing the vessel to drift off-center. Despite violating Suez Canal rules by speeding, the drifting worsened. Eventually, the ship turned too sharply and ran aground sideways, with the bow stuck on one side and the stern nearly touching the other.
As a result, the Ever Given blocked the entire canal, halting traffic on both ends, including 15 ships behind it. Initial attempts to free the ship using tugboats were unsuccessful because it was wedged in the sand. It didn’t help that the Suez Canal was very shallow and narrow, making it difficult to pull the ship out of the sand.
With assistance from the Suez Canal Authority and additional equipment, the crew worked to free the ship using blunt-force methods. If they were unsuccessful, they would have to offload the cargo to lighten the vessel. However, the absence of a nearby port meant that this process could take weeks or even months. It became a bigger financial risk to continue pulling the ship away from the bank, as ships behind the Ever Given and on the other side of the canal had to wait longer and longer.
Finally, on March 29th, the Ever Given was successfully freed from the canal and refloated. Despite bow damage, the ship remained seaworthy and continued to Rotterdam. The ship was later repaired and returned to service in a few months. However, before it left the canal, it would still have to contend with the economic repercussions of the grounding.
The Effects of the Ever Given Grounding
When the Ever Given was grounded, the internet exploded with memes and interest. Regular people have never experienced such a severe supply chain disruption, and the image of a ship blocking a waterway was initially amusing.
However, the grounding also raised serious concerns for corporations, shippers, and retailers. Ford, GM, and Toyota faced auto parts shortages, while IKEA, Lenovo, and McDonald’s experienced product delays due to the Ever Given obstruction. Livestock, medication, and temperature-controlled freight were also at risk due to the delay.
The 400 vessels queued behind and in front of the Ever Given faced a tough choice: wait for the ship to be freed or sail around Africa, incurring higher fuel costs and increased risk of piracy. Few chose the longer route. After the Ever Given was freed, the Suez Canal Authority kept the canal open until the queue cleared.
However, the total financial impact of the Ever Given‘s stranding in the Suez Canal was significant. It is estimated that the global economy lost about $10 billion for each day the ship was stuck, with associated claims from other companies affected by the grounding reaching $2 billion.
The Suez Canal Authority seized the vessel after it was freed, initially demanding $900 million in damages. This amount was later reduced, leading to a confidential compensation agreement between the owners and the authorities. However, the shipowners still face lawsuits from other companies, including Maersk, for losses from the grounding.
What Can Shippers Learn from the Ever Given Grounding?
Years later, it’s easy to look back on the grounding of the Ever Given and find it a perplexing and humorous event. However, logistics professionals should not view this incident as a mere fluke. The blockage caused by the Ever Given in the Suez Canal serves as an example of routine shipping gone awry. Valuable lessons from this event can help prevent similar occurrences for you and your team.
Here are four takeaways from the Ever Given grounding:
Understand the conditions outside: The Ever Given attempted to navigate a narrow, shallow canal on a very windy day following a severe storm. If the crew had postponed their journey and waited for the weather to improve, the ship would likely have passed through successfully. It is therefore crucial for shippers and carriers to be aware of the weather conditions along their shipping routes. Pushing through a delivery in bad weather can lead to accidents, damage to valuable cargo and drivers, delays, and increased costs.
Have backup routes prepared: Many of the vessels idling while the Ever Given was stuck had to decide whether to wait for the ship to be freed or take the route around Africa. If your typical shipping route is unavailable and you are aware of it in advance, it is crucial that you have an alternative route your transportation vehicle can switch to to avoid risk. Yes, you may have to pay more for fuel if the route is longer, but it is worth it in an emergency when you cannot use your regular delivery route.
Always follow protocol: When dealing with other authorities, it’s best to adhere strictly to the rules. The Ever Given, for example, broke protocol while navigating the Suez Canal. As strong winds pushed the vessel off-center in the lane, the crew attempted to exceed the speed limit to counteract the effects. However, this decision ultimately led to the ship becoming deeply wedged when it ran aground. Following standard protocol ensures that risks do not need to be taken.
Communicate with your team and others involved: Allegedly, the Ever Given ran aground not only due to weather and high winds but also because of poor communication between the crew and the Suez Canal Authority pilots, who were assigned to the vessel to help navigate through the canal. However, the pilots argued in another language instead of coordinating a response during the crisis, excluding the crew from discussions until the crash. Being on the same page as the rest of your team guarantees successful delivery and a coordinated response to an emergency.
What Shippers Should Do to Not Run Themselves Aground
The grounding of the Ever Given may seem like a rare occurrence, but its ripple effects highlighted just how fragile global logistics can be when preparation, communication, and contingency planning are inadequate. One ship, stuck in one canal, was enough to disrupt industries, delay the delivery of essential goods, and cost the global economy billions in just a few days.
For today’s shippers, the lesson is not to fear the unexpected but to plan for it. Awareness of weather conditions, alternative routing, strict adherence to protocols, and clear communication are not just best practices; they are safeguards against disruptions in our interconnected world. As global supply chains become increasingly complex, resilience will depend on learning from events like the grounding of the Ever Given and applying those lessons long before the next crisis occurs.
