Suez Canal blockage could cause problems for the globe: Here’s what you need to know

Suez Canal blockage could cause problems for the globe: Here’s what you need to know

The behemoth cargo ship stuck in the Suez Canal and blocking traffic in one of the world's most important maritime trade chokepoints isn't set to break free just yet.  The Ever Given, a 220,000-ton mega ship nearly a quarter-mile long with a 20,000 container capacity, ran aground after being blown by strong winds while entering Egypt's Suez Canal from the Red Sea. It's completely blocked the passageway that is home to as much as 12% of the world's seaborne trade and through which 50 container ships normally transit per day.   Tugboats and dredgers are currently working to dislodge the ship, which has been stuck since Tuesday evening. But the operation could take weeks, one of the executives involved has warned.  "While we believe and hope the situation will get resolved shortly, there are some risks of the ship breaking," J.P. Morgan strategist Marko Kolanovic wrote in a note Thursday. "In this scenario, the canal would be blocked for an extended period of time, which could result in significant disruptions to global trade, skyrocketing shipping rates, further increase of energy commodities, and an uptick in global inflation."

What does this mean for global trade?

The shipping delays could impact everything from the clothes and shoes you ordered