Suez Canal Jammed, Oil Supply Chains Could Be Hit

The blockage of Suez Canal, one of the world’s busiest shipping routes, by a giant container vessel is likely to have a disruptive effect on global energy supply chains. Most of the refiners in the U.S. and Europe rely on this maritime route for transport of oil shipments from West Asia.

A large container ship ran aground in the canal on Tuesday, blocking the international trade route. Efforts to refloat the ship that weighs over two lakh tonnes haven’t yielded results so far. The 400-metre-long ship owned by a Taiwanese company, which set sail from China, was bound for the Netherlands.

The Suez Canal that links the Mediterranean with the Red Sea is among the world’s most important waterways.