The Suez Canal Authority (SCA), which had allowed some vessels to enter the canal in the hope the blockage could be cleared, said it had temporarily suspended all traffic on Thursday.
On Tuesday, the Ever Given, operated by Taiwan-based Evergreen Group, was en route from China to the Netherlands when it became stuck during a sand storm in the Suez canal and blocking shipping traffic.
“We can’t exclude it might take weeks, depending on the situation,” Peter Berdowski, CEO of Dutch company Boskalis which is trying to free the ship, told the Dutch television program “Nieuwsuur”.
A total of 156 large container ships, tankers carrying oil and gas, and bulk vessels hauling grain have backed up at either end of the canal, Egypt’s Leith Agencies said, creating one of the worst shipping jams seen for years.
“It is like an enormous beached whale. It’s an enormous weight on the sand. We might have to work with a combination of reducing the weight by removing containers, oil and water from the ship, tug boats and dredging of sand.”
Shipping experts say that if the blockage is not cleared in the coming days, some shipping may re-route around Africa, which would add roughly a week to the journey.
“Every port in Western Europe is going to feel this,” Leon Willems, a spokesman for Rotterdam Port, Europe’s largest, said. “We hope for both companies and consumers that it will be resolved soon. When these ships do arrive in Europe, there will inevitably be longer waiting times.”
Consultancy Wood Mackenzie said the biggest impact was on container shipping, but there were also a total of 16 laden crude and product oil tankers due to sail through the canal and now delayed.
The tankers were carrying 870,000 tons of crude and 670,000 tons of clean oil products such as gasoline, naphtha and diesel, it said.
According to oil analytics firm Vortexa, Russia and Saudi Arabia are the top two exporters of oil through the canal, while India and China are the main importers.
Joanna Konings, senior economist, International Trade Analysis at Dutch bank ING, said the impact on the world economy would be limited if it did not drag on since the container shipping industry was used to days of delays.
But Germany’s BDI industry association was concerned. Deputy Managing Director Holger Loesch said earlier delays were already impacting production, with industries depending on raw materials or construction supply deliveries particularly affected.
About 16% of Germany’s chemicals imports arrive by ship via the Suez Canal and the chief economist for the association of German chemicals and pharmaceuticals producers VCI, Henrik Meincke, said they would be affected with every day of blockage.
Bernhard Schulte Ship Management (BSM), the technical manager of Ever Given, said dredgers were working to clear sand and mud from around the blocked vessel while tugboats in conjunction with Ever Given’s winches work to shift it.
Japanese ship owner Shoei Kisen apologized for the incident and said work on freeing the ship, which was heading to Europe from China, “has been extremely difficult” and it was not clear when the vessel would float again.
The owner and insurers face claims totaling millions of dollars even if the ship is refloated quickly, industry sources said on Wednesday. Shoei Kisen said the hull insurer of the group is MS&AD Insurance Group while the liability insurer is UK P&I Club.