Shipping Management Assignment 2nd Years

FACULTY OF ENGINEERING & THE BUILT ENVIRONMENT
DEPARTMENT: MARITIME STUDIES

QUALIFICATION(S): BACHELOR’S DEGREE
ASSIGNMENT: THE COST OF THE SUEZ CANAL BLOCKAGE
SPECIAL INSTRUCTIONS:
 The assignment must be typed or legibly printed in ink. Word count should not be less than 1500
but not exceed 2000
 ALL your calculations must be done on an Excel spreadsheet and be converted to a PDF.
 Plagiarism is NOT ACCEPTED!!
 A minimum of 10 or more references to be used.
 SUBMISSION Date is 02 October 2024 at 16h00 to my email address:

[email protected]
The cost of the Suez Canal blockage
On 23 March 2021, the Suez Canal was blocked after the grounding of Ever Given, a 20,000 TEU container ship.
On 28 March, at least 369 ships were queuing to pass through the canal.
14 tugboats pulled and pushed the Ever Given at high tide to try to dislodge it and were able to move the ship
"30 degrees from left and right".
After several reports that the ship had been partially refloated, the Suez Canal Authority (SCA) issued a statement
saying that the Ever Given had been "successfully refloated.
How much has the blockage cost?
About 12% of global trade, around one million barrels of oil, and roughly 8% of liquefied natural gas pass through
the canal each day.
According to SCA Chairman Osama, the Canal's revenues took a $14m-$15m (£10.2m-£10.9m) hit for each day of
the blockage.
Data from Lloyd's List showed the stranded ship was holding up an estimated $9.6bn of trade along the
waterway each day. That equals $400m and 3.3 million tonnes of cargo an hour, or $6.7m a minute.
The Suez Canal blockage affected not just the global shipping industry or the Egyptian economy—countless
businesses, from domestic transport providers to retailers, supermarkets, and manufacturers, were also
impacted. The true damage and cost were difficult to evaluate until the ship was fully freed and trade resumed.
The Suez Canal was blogged from March 23rd to March 30th, 2021. When shipowners realised the delay
would be prolonged, they investigated other routes.
“The alternative to a Suez transit is a lengthy diversion via the Cape of Good Hope (CGH), and some
operators considered this.
Your vessel departed the port of Kaohsiung, Taiwan, and proceeded to Rotterdam. While steaming through Johor
Strait, the Master received “a call” on the GMDSS radio that the Suez Canal was blogged for the aforementioned
number of days and advised the office. You, as a ship manager, ordered the Master to “wait” in Banda Aceh until
the decision was taken.
After one day at Banda Aceh, the vessel proceeds via the CGH. Alternatively, they waited there until the Suez
Canal was freed.
Task:
 Write a comprehensive report, giving a full background of what transpired at the Egyptian canal.
 As a ship operator/manager, you must complete a cost analysis to determine the “right decision”
whether the vessel must wait until the Suez Canal is freed or continue via the Cape of Good Hope, using
the information given below.
 Your assignment shall be structured as follows:
 Topic 1 – Introduction
 Topic 2 – Cost-benefit analysis
 Topic 3 – Findings/Recommendations
 Topic 4 – Conclusion
Voyage Estimate Calculation information:

 Daily charter rates: see attached Daily charter for each group
 HFO: 52 tons/day
 MDO: 4 tons/day
 Distance between Kaohsiung to Banda Aceh: 2238 NM
 Distance between Banda Aceh to Rotterdam via
Cape of Good Hope: 11284 NM
 Distance between Banda Aceh to Rotterdam via
Suez Canal: 7899 NM
 Berthing fees in Banda Aceh: $35 000 per day
 Bunker cost HFO: $320 per ton
 Bunker cost MDO: $540 per ton
 Suez Canal transit cost: $250 000
 Piracy security cost: $165 000
Calculate the following:
 Number of days your ship is expected to steam from Kaohsiung to Banda Aceh.
 Total charter rates for the voyage, including waiting days at Banda Aceh.
 Total expenditure for waiting in Banda Aceh.
 Expected total cost to Rotterdam via Suez Canal, including the waiting days in Banda Aceh.
 Expected total cost via Cape of Good Hope
 Ship Speed is calculated at 21 Knots. Round of to the nearest day

Shipping Management Assignment 2nd Years

Uploaded by

Copyright:

Available Formats

Shipping Management Assignment 2nd Years

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Shipping Management Assignment 2nd Years

Uploaded by

Copyright:

Available Formats

FACULTY OF ENGINEERING & THE BUILT ENVIRONMENT

DEPARTMENT: MARITIME STUDIES

ASSIGNMENT: THE COST OF THE SUEZ CANAL BLOCKAGE

 SUBMISSION Date is 02 October 2024 at 16h00 to my email address:

The cost of the Suez Canal blockage

How much has the blockage cost?

operators considered this.

Voyage Estimate Calculation information:

Calculate the following:

You might also like