tv Inside Story Al Jazeera March 26, 2021 8:30pm-9:00pm +03
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not so much against india and its people the criticism is spotty they feel like this prime minister has a hand in good job drive. citizenship the border killing the cush made a killing against muslims in india all these issues come into play also the fact that india has not been very good it has a negotiated water treaty and other pending issues just today there's been major clashes in the commercial area by the progressive left wing students on the left and biggest mosque has a major protest by the religious right parties the mosque right now as i speak is surrounded by police and ruling party supporters there's been clashes chittagong headquarters. that they slimy one of the major platform. supporting against this. is supporting protesting against india's most of these visit here so a lot of clashes going on many people have been detained dozens of people have been injured and it's an ongoing thing still going on in dhaka.
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now that we got the headlines on al-jazeera to passenger trains have collided south of cairo killing at least 32 people and injuring 165 in the provinces so hodge egypt's government says someone triggered emergency breaks in one of the trains before the other ran into it eritrea has agreed to withdraw its troops from ethiopia after months of fighting ever trained troops have faced allegations of killing civilians as well as rape and torture the u.n. says 2 refugee camps have been destroyed german health officials are warning that its latest wave of the corona virus could be the worst so far they're urging people to stay home during the upcoming easter holiday there are fears there could be as many as 100000 new cases every day that spread as current.
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several u.s. politicians are visiting border patrol facilities in texas to draw attention to the plight of unaccompanied children being held there it comes a day after president joe biden defended his handling of the influx of migrants at the southern border calling it a seasonal increase. warning its forces will shoot protesters in the heads of knowledge in a shoot to kill policy for the 1st time on state media earlier at least 3 protesters were killed in the southern town of. police in bangladesh have opened fire on crowds protesting against a visit by indian prime minister narendra modi killing 4 people there were demonstrations in several cities including the capital dhaka the protesters say he's not welcome accusing him of persecuting mr limbs in. those are the latest headlines on al-jazeera the news hour it is at the top of the hour up next as inside story thanks for watching.
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one stranded ship one giant problem for global trade it could take weeks to free a cargo vessel wedged across the suez canal one of the world's busiest shipping routes is out of action so what will be the impact of the blockage isn't cleared soon this is inside stuart. hello and welcome to the program i'm homage enjoy him global shipping has been thrown into chaos because of a mishap on a major waterway the ever given one of the world's largest container ships was
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blown sideways and became jammed on the suez canal in egypt that's created a tailback of other cargo vessels carrying billions of dollars worth of goods in both directions between asia and europe egypt says it hopes to be able to dislodge the ship soon and reopen the canal but experts fear it could be weeks before that's possible other ships may now have to reroute which would mean a much longer journey to their destination charles stratford reports 400 metres long and weighing 200000 tonnes stuck in what's often described as the most important shipping lane in the world a maritime accident with global implications the ever given container ship became wedged across the suez canal and choose day when high winds blew girl for cause. about 12 percent of global trade passes through the a 193 kilometer long canal which connects the red sea with the mediterranean providing the shortest link between asia and europe the vessel carrying around
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$20000.00 containers is registered in panama are operated by the taiwanese transport company evergreen marine it was sailing from china to the port city of rotterdam in the netherlands when it got stuck the japanese owner has apologized but says the situation is extremely difficult and there is a citizen that will present the traffic along this year's canal has been to stop to get you to the incident and local authorities are working under saddam issue using tugboats but that is most myth of time for debate is all. this image posted on a ship tracking website shows the backlog of at least $150.00 vessels stuck in the northern entrance of the canal at ports 8 in the middle in an area called the bitter lakes and at the southern entrance at sue is the vast majority of oil from the gulf is transported to europe along the canal oil prices rose sharply on thursday industry experts are warning of a flood of insurance claims covering the vast amount of cargo being held up with
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officials say at least 8 tug boats are trying to dislodge the vessel which experts say could take days if not weeks containers may have to be offloaded in order to lessen the weight. ships now face the prospect of having to travel thousands of additional kilometers around the southern tip of africa a huge cost and potentially delaying delivery of goods by weeks the ships that are stuck throughout the canal and its the north band are in a precarious position to may name may not be able just to turn around and take another course as long as it's an expensive as it is to go from the mediterranean around africa and vice versa the suez canal authority says around $20000.00 ships pass through the canal last year egypt billions of dollars in total fee revenue the ever given is $1.00 of the largest container ships in the world but for every hour and every day it remains stock and stationary there are concerns about the
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financial fallout and impact on global trade foot which is arrow let's take a look at why the suez shutdown is creating more than a few ripples in the business world about 30 percent of global container ship traffic sails through the waterway an assessment by lloyd's list shows $9600000000.00 worth of daily marine traffic is being blocked the canal is a big earner for egypt's economy contributing more than 5 and a half 1000000000 dollars last year. all right let's bring in our guests from oxford guy platen secretary-general of the international chamber of shipping here in doha with mustardy an egypt analyst and associate professor of media and cultural studies at the doha institute for graduate studies and from brussels james moran former european union a baster to egypt jordan and yemen thank you all so much for joining us guy let me start with you today this incident really shows just how much global supply chains
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rely on shipping doesn't it and also let me ask you just how massive are the implications for global trade right now. well i think you know your figures if you're shown but 12 percent of total cargo volumes pass through the suez canal each year that's over a trillion dollars a year and as your report said $10000000000.00 is held up each day and so it's been 3 days so far so you can do the math from that and also they've got the hundreds of ships now which are now lying ankle weights to pass through the canal and ship owners and managers have to now take that difficult judgment do they now switch routes and take the long route around which adds another 3 and a half 1000 nautical miles the journey and between $5.12 days to the journey times with the knock on delays that will that will result in that so it's actually huge nothink it shows you how strategic the suez canal is in terms of waterway and how dependent. we are on it to have a the best most efficient supply chains in goods coming from asia to europe
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mohammed just how important strategically and economically is the suez canal for egypt. it's critically important i mean you just you just can't overstate that point i mean it's important for strategic reasons for symbolic reasons egypt has fought multiple wars over control over the suez canal and so egyptians view it sort of as a source of national pride a source of national or a symbol i should say of national independence but the neck 'd anomaly you know egypt brings in more than $5000000000.00 in annual revenues as a result of the suez canal so it's a main source of foreign currency for the country and you know it's one of the reasons why sisi one of the very 1st things he did in 2014 when he took over as as president was announced this great expansion of the suez canal that he said would
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greatly you know he said it would double or more than double the revenues from the from the suez canal and that just underscores the extent to which this is really just critically important for egypt's economy james the ever given is massive it's almost as big as the empire state building should a ship that huge actually be passing through the suez canal. well since they made the improvements to the canal a few years ago there deepened the draft in the waterway and. part of the reason for doing that was so that they could accommodate these very large ships but of course the challenges of navigating through the canal and if you've been on a diver many times in knots and you have to have very precise. serious techniques and support to get the ships through especially when they're that size somebody has gone wrong whether it was the weather whether there was
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a technical issue you're going to perhaps from the piloting the navigation which is provided by the suez canal authority we don't know but it is a challenge that normally should work. guy who is ultimately going to be held responsible for all this. well clearly here the start the heart of it will be the shipowner but in fact all the people involved in the voyage and i think it as james just said we don't know yet what actually went wrong so we need to establish those facts before you can start apportioning blame that there's clearly as many many claims are going to go in addition all the different cargo interests the more the ships which are delayed so there's some huge litigation coming down the line on this one and of course the knock on attacks to trade as well and how much as you mentioned in your previous answer the egyptian government ordered the suez canal to be expanded in 2015 but judging just by what's happened was enough done in that expansion i mean if enough had been done would an accident like this would an
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incident like this have taken place. well i'm not i'm not a technical expert on on can now so i can now begin canal expansions so i can't speak to that but when i can say is that c.c. presented this as an economic revival project and the revenues in i have the numbers here in front of me the revenues in 201320142015 the were just over $5000000000.00 in 2014 for example they were $5500000000.00 not only have revenues not doubled they have stagnated in 2020 the revenues were $5600000000.00 so there hasn't been really any increase in revenues certainly nothing like the 13 and a half $1000000000.00 that c.c. promised would be coming in by 2023 so that adds to i think the tension here i think it adds to the nature of the political crisis and i think it's interesting that at least as far as i'm aware you know walking over here to do this
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interview sisi hadn't spoken on this and i think that's that's very striking james we've we've spoken about this already a little bit in this program but you know the suez canal it provides much needed foreign cash to the egyptian economy which has been struggling for quite a while now how bad and how embarrassing is this incident for egypt and what's the importance of trade right now for their economy. well how embarrassing we don't know because we go back to this point that no one really knows how this occurred and we won't know for quite some time but one thing we're going to do about it i think is very important and some point once so the issue is resolved in the coming days or weeks there has to be a transparent international investigation into what happened that will be depicted as 100 percent. jews regard the suez canal with a very special. it is a symbol of the nation some of the dependence of the center for egypt so
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sovereignty is a big issue when it comes to these things but in order to restore confidence in the canal operations there will have to be international had to rescue can actually be horribly but haven't so organizations are going down going down the track so embarrassing perhaps we don't yet guy i saw you nodding along some of what james was saying there did you want to jump in yeah i think the most important thing is we do a full and thorough investigation to establish the facts exactly what happened and only then can we learn the lessons and maybe see if there was negligence or failure at some point but i think that's the most important point we don't know exactly what happened we've got lots of speculation at this point what we do know is the ship is stuck fast aground and really a focus at the moment must be on refloating air and getting that waterway open again mohammed what are the broader implications for the region. well i think it's
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it goes beyond the region the global implications in your lead up you talked about how much money is is being potentially lost on a daily basis from the canal and i do want to just underscore the point that was made about the investigation i think this is going to be critically important that it saddens me as as an egyptian i'm not going to gyptian american but saddens me as an egyptian that i have to acknowledge that this investigation does have to be international i quite frankly if i'm going to be perfectly honest about it i don't trust any gyptian led investigation because this is a government that has proven itself to be corruption corrupt and complicit in in crimes against against the egyptian people and others so it's very important that this is an international you know sort of collaborative investigation i think it's also worth underscoring that this is happening
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tragically arman day when there is a there is news of a horrible passenger train crash in egypt that killed dozens of people and we have to highlight that the egyptian government is authoritarian and authoritarianism and corruption and inefficiency and incompetence and unfortunately egypt has become a place of disasters it is a place unfortunately where buildings collapse where trains crash and we're seeing what's happening in the in the suez canal where these past few days james looked to me like you were reacting to some of what mohammed was saying maybe wanted to jump in please go ahead. well it wasn't so much what mattered was saying about the situation and certainly if you had asked about the region there are people who say that this sort of thing might actually have an upside of what has been going on the last couple of years ago says that in europe anyway people become extremely
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concerned about being too dependent on the far east and china for their supply chains now this incident shows just how fragile other supply chains can be now on the up side of the region could be although i'm not going to i'm not saying it's going to happen but it could be that the so-called near shorey other words reading the supply chains closer to home either back into europe or perhaps in the middle east and north africa might get a boost from this incident although i don't want to be too optimistic about that but i think it might be one of the aspects to be looking out in the longer i was already something which is beginning to happen benzion china in particular has reached a stage in europe and elsewhere the americans to have a problem where people are thinking very seriously about rebalance this incident may just be one amongst the other factors that so exciting as that person's guy this situation is really only further compact complicating the supply chain
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problems have been caused by cove in 19 how exactly has the pandemic impacted shipping how dire the situation get. i think the 1st thing is is shipping throughout the house continue to deliver the fuel the food the medical supplies everything which is kept well go and i think we owe a massive debt of gratitude to the seafarers out there who've been manning those ships and its impact of the industry in so many different ways from the shutdown of china ingenue to every of 2020 which had massive repercussions on the on the sort of the factory shutting and the goods getting out and then we had that we couldn't get our crews off the ship because come to shut down the border wouldn't allow travel so we had a. shipping has proven to be extremely resilient but it has shown incidents like this really do show how fragile that supply chain actually is moving forward and i think that's a lesson that we can take away from this mohammed this pandemic and all of its
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related restrictions have really limited the availability of dockworkers and truck drivers it's caused delays in handling cargo all over the world i mean how is that impact of the global economy. you know i think that obviously the the pandemic has has affected. you know the global trade workers at the individual level at organizational levels and then at more macro levels at the state at the state level. that they do know the nation the level of the nation. but what's interesting here is that egypt hasn't been as affected in some of those ways because it hasn't shut down in some of the ways that other countries have whether that's for good or bad you know in terms of the virus and how that the government has chosen to to handle the outbreaks that have that have occurred in egypt you know that's for other folks to sort of decide but egypt trauma from just from
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a purely on the ground a business perspective has not been affected as as much as other places have been james is it clear yet what exactly has to happen in order to lighten the load of the ship if containers are going to have to be removed how difficult that might be and also is it clear if you gypped actually has the kind of equipment that's needed in order to accomplish this. well i'm not an expert on that but i think we know that if they have to stop removing of the containers from the ship is going to take quite some time and as especially equipment will have to be shipped in and i think they need a 200. foot high crane to stop taking those containers off it is obviously going to be a very slow process on whether egypt has the equipment don't forget that the main work going on at the moment when it comes to the dredging and digging is being carried out by the dutch salvage company which has been there before and so this canal
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knows the area very well and they know what they're about they're extremely professional. and in fact when it comes to looking out. the likely scenarios down the track i think they have the ones one ship this engine another one's by the way who studied with mike 6 weeks not 48 to 72 how many i saw you nodding is now did you want to jump in yeah i mean as as he just said the suez canal authority or somebody came out and said this is going to be handled within 48 to 72 hours and other international experts are saying that's perhaps too too optimistic i'm also seeing reports that there are countries that are sending help or at least offering to send help just within the last hour i saw a report that turkey is willing to send one of its massive ships that it says it can can potentially help alleviate the problem so i mean we're just going
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to have to watch it over the coming hours and potentially days guy are are more and more countries going to need to look to alternative shipping routes now i mean for example russia there's there's some speculation right now that perhaps they would use this to develop routes in the northern sea arctic routes what do you think are more countries going to be trying to do this. well that they're doing that anyway regardless of this you know the suez canal still represents a massive shortcut to trade between asia and europe so you know i have no doubt that when this blockage is removed ships will still continue to use the canal because it is just the most cost effective way of shifting the goods but there's no doubt that that route to being looked at all around the world now is as parts global warning some of the effects of global warming is opening up some of those more northern routes but it's what shipping is very good at is is adapting to the circumstances and that's what will happen here now as well if this goes on for days and weeks shipping will adapt and we'll just reconfigure it supply routes although
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they will take longer and there will be delays as a result of it james it's a significant sign of all the turmoil this has caused that the ships japanese owner has offered a written apology from your perspective how how extraordinary is that. well i think the maybe a cultural element here. you know as this where dealing with these things. and i think he's probably trying to cover. down the line we need it turns out that this is the human error related to the technical error related to the ship. i don't know that we can read more into it than that but as we've said earlier there are many factors here and they really do need to be carefully looked at in order the confidence can be restored to its cannot as a reliable conduit but as guy says in any event it's going to remain a major part of the infrastructure for well shipping the world trade in the weeks
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and months to come but egypt needs to think very carefully at the top level of everyone in ball very carefully about our best to manage them some not so not. sort of who. line is very important in egypt seems very very carefully reflects on her words to conduct. the persecution and mohamed picking up on what james just said about how important it is for egypt to really conduct this their investigation and picking up also on your previous answer in which you mentioned that there were egyptian officials that said that this all might be solved within 48 to 72 hours i mean where do you believe that shipping companies stand right now are they moving ahead with contingency plans do they think it's actually going to be weeks are some of them prone to believe that you know it might actually open up within the next 4872 hours. you know i don't know i'd be guessing maybe some of them are going to
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watch inside story to see to see what we say i mean you know i think that people are probably just waiting on pins and needles i mean these are people these are folks that have you know millions of dollars on the line. a but and you have these varying analyses out there that might figure 2 or 3 days that it might take you know a few weeks and i think that at the end of the day you know nobody really knows i mean we hope that we'll have more clarity more answers in the next you know 24 hours or so. but this is sort of unprecedented at least as far as i know for a ship this massive. to get to get stuck like this i'm not sure when the last time something like this has happened so we're sort of in unchartered waters you know no no pun intended guy in addition to all the economic implications there are security experts who have indicated that perhaps you know ships that are just idling in the
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red sea might become targets perhaps for attacks you know amid tensions between iran and the u.s. and other countries is that something you're concerned about. we're certainly aware of it and at the moment we are not overly worried but i think that's something that could change but actually just on that last point that you were asking we know that companies are now rerouting their ships to go round that the long way around and the longer this goes out the more companies will make that decision and even if it was cleared tomorrow can now that affect a backlog now it would take some days to clear that so i think there's operational to be decisions being made as we speak and of course even if they do route there's some security issues there because she will have to transit through the gulf of guinea which we know is a known power see she there and also to the gulf of aden as well so security is very much at the forefront of mind when they're making these decisions and looking after of course the welfare and the safety of their crew as well james we don't
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have a lot of time left just under a minute let me ask you the same thing are you concerned about security of these ships right now i think i'm like i said everybody's concerned about security at the shirts wherever they are. on the other hand the situation in the red sea you know i'm not sure the gulf. was the suez canal has the whole been under control for quite some time and of course i'm sure that the shipping companies are where it was before that but i don't think it was a special reason to worry about that i agree with guy a greater danger probably would be possible attacks the south through the bubble and up and down through the coast of east africa well as for the long history. they go a long way around that's probably more dangerous than the weather at the moment in the. all right we've run other times we're going to leave the conversation there thank you so much to all of our guests guy platen mohammed musri and james moran.
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and thank you for watching you can see this and all our previous programs again any time by visiting our website al-jazeera dot com and for further discussion go to our facebook page that's facebook dot com forward slash a.j. inside story you can also join the conversation on twitter our handle is at a.j. inside story for me mama june the whole team here bye for now. this was wrong to take children away from their parents and herd them into
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