The widely reported economic impact of the Ever Given ship's grounding in the Suez Canal, a vessel operated by Evergreen, was estimated at $400 million per hour.
Understanding the Economic Impact
While the question refers to the "Evergreen ship," the significant incident that caused global economic disruption was the grounding of the Ever Given cargo ship. This vessel is operated by Evergreen Marine, which is why it's often colloquially referred to as an "Evergreen ship."
The Ever Given became stuck in the Suez Canal on March 23, causing a major blockage in one of the world's most crucial trading routes. This unprecedented traffic jam had immediate and far-reaching financial implications.
Hourly Cost Breakdown
The economic cost to the global economy due to this blockage was reported as:
- Hourly Cost: $400 million
This figure represents the estimated rate at which the world economy was losing money due to stalled trade, disrupted supply chains, and other related financial impacts stemming from the canal's closure.
Why an Exact Total Cost is Not Provided
To determine the exact total money the incident cost the world, one would need the precise duration for which the Ever Given blocked the Suez Canal. The provided information specifies the start date of the grounding (March 23) and the hourly cost rate, but it does not detail the total number of hours or days the canal remained blocked. Therefore, while the rate of cost is precisely stated, an exact final total monetary figure cannot be calculated from the available data.
Impact on Global Trade
The Suez Canal is a vital artery for international shipping, connecting the Mediterranean Sea to the Red Sea and providing the shortest maritime route between Asia and Europe. The blockage highlighted the fragility of global supply chains and the immense economic value of this waterway. The standstill affected various sectors, including:
- Oil and Gas: Delays in crude oil and liquefied natural gas (LNG) shipments.
- Consumer Goods: Impact on manufacturing and retail due to delayed components and finished products.
- Shipping Industry: Significant rerouting costs, increased fuel consumption, and schedule disruptions for vessels.
This incident underscored the critical role of maritime trade routes in the global economy and the substantial financial repercussions when such vital arteries are disrupted.
