tv Inside Story Al Jazeera March 30, 2021 2:30pm-3:01pm +03
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much to the delight of the crew of the dredger who'd worked round the clock to clear thousands of keeping meters of sand around the giant container ship. 10 tug boats then pulled it out of the bank and into deeper water but it has taken as quick as possible to do this on the high tides will help to insult a jeffords as well as well but i think it's fantastic news for the suez canal so the suez canal authority needs chips i think a really good job has been delayed by all involved 12 percent of global trade normally passes through the suez canal between the red sea and the mediterranean while the immediate crisis is over experts say the ever given as mishap raises long term questions about the canal sustainability is going to be a lot of head scratching and thinking not only about making supply chain more resilient but i'm sure a serious canal or thorazine is having a good hard think as well about how to make the the canal itself more about. the
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ever given is now in a wider section of the canal where it's being inspected for damage bringing an end to a crisis that's disrupted billions of dollars worth of global trade victoria gates and be al jazeera. is there and these are the top stories the world health organization and the leaders of 23 countries including the u.k. france and germany are calling for an international treaty to tackle future pandemics that aims to enjoy results as a shared and nations are prepared for the time to act is now the world cannot afford to wait until the pandemic is over to start planning for the next one. we must not allow the memories of this crisis to fade and go
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back to business as usual a survey from nearly 80 scientists is warning current vaccines could become ineffective against future covert 19 variants in this than a year a calling on companies to share vaccine technology so the world can be rapidly vaccinated to prevent the virus from spreading in new takes a huge. thailand says it has no policy to deny entry to refugees as thousands flee violence in qur'an states that's after activists accuse the thai army of forcing people back at the border or than a dozen refugees who arrived on tuesday have been given medical treatment. central african republic president challenged to a date at the set to be sworn in after his re-election last said he was reelected for a 2nd term in office with more than 53 percent of the vote. as the headlines and news continues here on al-jazeera the inside story of like.
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the cargo vessel blocking the suez canal is set free the disruptions cost billions of dollars in trade so how long will it take for business to resume on the one of the world's busiest shipping lanes and can another mishap like this be avoided this is inside story. hello and welcome to the program. a major disruption to global trade is closer to being a result salvage crews have refloated the ever given
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a container ship that's been a wedge to cross egypt suez canal for nearly a week it created a major traffic jam on the main shipping route between asia and europe billions of dollars worth of trade has been lost experts are now trying to move the vessel so other ships and tankers can finally pass alexy o'brien reports. finally on the move the ever given being told to down the so was canal after being stuck for almost a week. the celebrations began before dawn as the mess of container ship was 1st partially refloated the. despite an international rescue effort the vessel had been waged across the waterway which is one of the busiest in the world. since tuesday dredges and diggers have removed thousands of cubic meters of sand from underneath the ship and a flotilla of tugboats says worked on dislodging it it's forced tankers and cargo
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ships to queue at either end of the canal delaying global trade each day that passes is about $7.00 to $8000000000.00 worth of goods which would usually pass through the canal so a week later you're talking $4550000000000.00 of delays really much of the thing will catch up and some of that but there will be ongoing place it's hard to put a figure on it and of course some carcass may perish because they were time critical there will be no doubt some big insurance claims going in the crisis is having an impact on syria the authorities a ration in fuel supplies from iran a stock some vessels are carrying livestock cotton from india for clothes and auto parts from china. well we've got 20 confines on will and that can go ranging from one to lower incidence so it starts. what goes up trance very concerned not only get a good sense on she was cuter oh i don't accept this good friday and i can't really
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see arrive at least not maybe 14 days experts say the blockage raises long term questions about the canal sustainability i think what's happened is that container carriers got larger quite rapidly. and so i think this particular accident was really waiting to happen there's going to be a lot of head scratching and thinking not only about making supply chains more resilience but i'm sure the su is canal authority is having a good think as well about how to make the the canal itself more about despite the progress the salvage company warns there are still challenges and even with the given underway canal thora he say it will take days for the backlog to klia alexy o'bryant the inside story. all right let's bring in our guests in london stuart neil communications director
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at the international chamber of shipping in copenhagen christian buga professor of international relations at the university of copenhagen in zurich maggot man door a political analyst welcome to the program a christian one of the things that keeps coming up in the discussion about all this is the size of the ever given this is a mega ship it is massive it is almost as long as the empire state building our ships these days simply getting too big and will accidents like this continue to happen the more the size of these ships increases. should. be here in this case the ever getting is after the f.f.t. carrier one of yours a chemist 20000 shipping containers and he has not surprising in the end you seen any accidents and perhaps you should also not forget that this was not the 1st incident with this particular ship there was
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a collision in tragedy 19 interest. 2 wins so yes the risk is crazy maggot what is the fallout of all of this going to be for egypt especially in the short term. well i would say it's basically. highlighting the importance of. of the country and the position that best ability of this this part of the world a place. in the short term i don't see ready any that's a major implications. domestically. is going to try to play this out as a success which relatively it was but internationally of course there will be more concern not just towards the logistics
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of the canal but the long term prospects the regime and the possibility of course but disturbances considering the situation in the country and the and the implications that this might have on. trade and shipping. stuart what are the steps that are going to need to be taken now to clear the backlog in the suez canal and how long you think that's going to take. well it's going to take some time and i think from our understanding there is concern about some of the ships that are taking lock stock and those i understand will be prioritized but it is going to take quite a few days because of course the ship the canal at that point is a one way journey you can't you know jewel carry joy that we're going to have to move ships that are coming from europe to asia from asia and middle east to to
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europe so that's going to take quite a few days to get through my understanding is there something in the region of 36350 ships backing up at the moment and some as you reported making a longer journey around the cape of good hope and the other side of africa christian from your perspective has enough attention actually been paid to just how crucial maritime routes are for global trade and what the security implications are about all of this. craigslist kind of just a wake up call and makes us aware of how and we actually want to see and this is a phenomenon you know you always often describe as you know lightness we look away . and we are under sea and this is of course a different with global supply chain management and so on and of course also has
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implications for how you regulate the shipping industry and how far we have having a discussion on what is safe and what is not maggie can you tell our viewers a little bit about just how important the suez canal is for egypt i mean both strategically and symbolically you know for national pride purposes as well. yeah so so historically the canal has let's say occupied a very special place in the in the popular imagination. it was basically the rallying cry of the nationalist movement. nationalization by nasser was let's say the foundation of his regime and so it's a very let's say important. symbol of
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of. of let's say national pride. of course it canonically the revenues are about $1.00. percent of the g.d.p. so it doesn't seem that much however it is indeed a critical in terms of the provision of let's say. hard. currency the most important part of this is that it shows the importance of the country strategically to the world so if there are any blockages in that canal the whole world will will take notice so. in short it is a very important canal. historically and. stewart considering what happened how are shipping companies looking toward how egypt has
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handled what has occurred in the suez canal is there a lot of concern growing about continuing to use the suez canal are there discussions taking place among shipping company executives about trying to perhaps take other routes. it is that his canal is a key transit route for the shipping industry and you know we're talking about 12 percent of global shipping trade and if you think globally you know about 14 trillion dollars worth of product to ship by the shipping industry year it is a key key route because you know anything up to an additional 12 days of transit if you have to go around africa so i don't think it's that's an issue because the reality is the canal normally runs perfectly well probably about $5052.00 ships
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a day on average well over $18000.00 ships last year so you know it's not really it's a short term issue will overcome this the shipping industry is very resilient you know and i christians pointed out it seemed blindness is probably because the shipping industry just gets on and does its job creation from your perspective what are the lessons that need to be learned from all of this for the shipping industry and for global trade going forward. well 1st of all we have to it is you just in context that is much more than short term economic costs it raised the question what she did for her abilities of all current and transport system who it's fairly liberal i want us to tread into the meat container vessel is actually a plug for the safety of navigation in different parts of the world and then what kind of update response we actually need both in terms of safety or asians but also
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in security operations and let's not forget there are also other when her ability is all out there and it ranges from piracy and incidents and you know again the for instance then this oh of the conflict and yemen until energy and political tensions as we can and see if the ticket in the strait of hormuz so be it literally need to cd they will attempt to put america transport system. as a whole and carefully assess what's going to her abilities and where is it up to the shipping industry to take care of it themselves and wait he said that actually the public at the state government needs to get in maggot the egyptian government expanded the suez canal in 2015 it's my understanding it was
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a different part of the canal where the expansion happened not where the ever given was stuck you know from your point of view is there now going to be a push to try to expand the suez canal further and is that something that can even be done. i'll be very surprised if there is because the 1st expansion was basically built up as the basis for for let's say an economic revival this this again plays into the popular imagination of the canal so the cost of the project was about 8000000000 with kind of expectations or the government stated that they're expecting the revenues of the canal to a double in the domestic media some very let's say outlandish. figures were. were stated. were never
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achieved so so the. the increase in the revenues was minimal so. from an economic return. perspective i don't really believe that that that. that it made sense to do to the point where. he himself said that the project was to raise our national. more out after it became clear that the projected revenue figures were not. let's say realistic so the. so the idea of doing another expansion doesn't really serve the region well at least domestically not the focus. is on this new.
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minister of capital which is another multibillion dollar project i think it's the budget is around $58000000000.00 and the plan is to open up the 1st phase by the end of this. so i don't really perceive that that it would play well for the region to do another project similar to that one stuart a moment ago christian was talking about the lessons that ought to be learned by the shipping industry in the wake of what has occurred in the suez canal let me ask you do you believe those lessons will be learned or will it just go back to business as usual now i think they'll be the industry's got a fairly robust security regime whether that's true the international maritime organization which is the global regulator party united nations right through support state control in the requirements of an assessment of what happened in this instance so we as an industry very well regulated very well focused on safety
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because you know it's our prime requirement so we will learn lessons we need to learn lessons and if there's anything that needs to be adapted and changed that certainly would be incorporated into any of the arrangements going forward be that regulation or operational requirements christian when it comes to liability claims who do you think ultimately is going to be held responsible for all of this. despite obviously you will be one of the loudest eager faces ever and very much look forward to all of this although they have x. years and have nots and that cate's but let's not forget you always also have to ask each of these responsibilities of the shipping industry was there a problem with navigation was it logically to leave it means and what kind of accidents like this predictable and new in the future let's not forget it was not a particularly good year for shipping so far and we had 2 incidents of major
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contain a loss and gerry and celery and said if you shoot even further last year we saw a major oil spill in marshes by then was there by woods and disaster and i think all of these incidents that really call for a lot of tension to how a bishop in industry is and is regulated but then also what are the good guys and the black sheep in that and business so these are the kind of questions that we need to ask and not only now in the current crisis but also will welcome to a new future maggot a lot of analysts have said that was really needed right now is a a thorough and transparent investigation and what i want to ask you is is that something that's going to be possible you know in egypt right now. well let's say
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there gene doesn't have the best. track record of that so the possibility of that is limited unless there is a let's say enormous international pressure to have a thorough and. transparent investigation that then see of all the region historically when something like this happens is to try to find that is to try to shift the blame to somebody else. and not really take responsibility if the blame actually falls with. the government which is not clear at the moment so the quick answer is no but with a box because maybe the situation is we did global in scale. so the rules for maneuver i would say is rather limited and i think that they might be forced to to to do that stuart how much is all this going to impact freight costs
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and when do you think we can expect the costs of these delays are going to be passed on to consumers. well i think they the reality is that a lot of this is in short most most of the cargoes will be insured so whilst there will be delays and then maybe some increases the reality is that as christian talk to you know we're going to see a very long and protracted legal action rather than stopping the operations what we do see though is that ships that would have been through the canal picking up something else they would be delight if those are products that are sort of food they may have gone off so there will be some cost in that and obviously the industry's working hard by the very root saying or doing what it can to ensure that that doesn't escalate and of course this comes on the back of the crew change crisis and you know we still seeing seafarers being tonight access to get on
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and get off ships which is causing a real constraint for the industry and that's something that we've been very concerned about throughout the last year with the coronavirus outbreaks yeah chris i want to ask you to follow up a bit on what sort was just saying there because this situation's really only further complicating the supply chain problem that have been caused by the pandemic right i mean how has the pandemic impacted shipping in the past year. i think crucial at the most crucial to mention here is create a crew change problem and many of the crews have been on on vessel it's now for an enduring period of time and that quite obviously also leads to fatigue n.b.a. we are going to see a messy geishas in in what way this s. play a role in the swiss accidents we know already that it has played a role in recent days marion accidents just
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a year in maurice's oil. so obviously that has being a significant impact or. are from kuwait. and this list. of is the cups at their worst imaginable time possible because levels of shipping where just back to to know all from the pretended maker times so events v.v. a tricky tricky bit rio in but my prediction is that both because of the trends towards the need of absolutes but also considering climate change and more severe weather events we are going to see many more marion accidents and in the future and obviously is not necessarily good news maggie you said earlier that the egyptian government is really sort of claiming success right now i want to ask you if you think from your vantage point that shipping companies really believe that
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the canal is going to be fully operational soon or are they moving ahead with contingency plans. well i think that there's very hard for me to tell i think in the next maybe a day or 2 things will be clear but my understanding is that. some shipping companies have now gone into the contingency. plans considering that the q. was around $350.00 ships. but i think considering that capabilities that bailable the government did do at relatively good job and. be able to to create a ship the steward what can be done to prevent this from happening again but as a side i think we need to learn the lessons we need to look at if there are any issues that were specific to this this occasion but the reality is that you know 90
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percent 9090 percent of everything that you and i and everyone have used 8 food cause even the p.-p. we're all needing at the moment that gets transported by ship so you know the shipping industry globally has to carry on and and that's what it will do all right we've run out of time for going to have to leave the conversation there thank you so much to all of our guests stuart neil christian buga and magnan dollar and thank you too for watching you can see this and all of our previous programs again any time by visiting our website al-jazeera dot com and for further discussion go to our facebook page at 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 i'm a gentleman the whole team here i found out. examining
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