The commerce department has informed that the government is carefully monitoring the impact of the blockage at the Suez Canal.
Key Points
- As per the assessment of the government, the total backlog at the waterway is likely to be cleared in a week’s time.
- The logistics division of the commerce ministry on March 26 has devised a four-point strategy to handle the situation at a meeting with other departments and bodies concerned.
- It was noted in the meeting that more than 200 vessels are waiting on the North and South sides of the Suez Canal and about 60 vessels are getting added to the queue on a daily basis.
- If 2 more days are taken before the efforts result in clearance of the canal (digging on both sides, extra barges being added on every high tide, tugboats, etc. to straighten the stuck vessel), the total backlog created would be about 350 vessels.
- It is expected that this backlog should take about a week time to clear out.
- The meeting was also attended by the shipping and waterways, ministry of ports, ADG Shipping, Federation of Indian Export Organisations (FIEO), and Container Shipping Lines Association (CSLA).
- Towards this, FIEO, and other associations will jointly identify cargo, particularly perishable cargo, for its priority movement. They will work with the shipping lines for the same.
- Once the blockage is over, some bunching is expected at JNPT, Mundra, and Hazira ports.
- Ministry of ports, shipping, and waterways will issue an advisory to these ports so that they efficiently handle the situation during the forthcoming busy period.
Since 23rd March, the blockage of the Suez Canal is seriously hitting global trade. This route is used for Indian exports and imports worth $ 200 billion to and from South America, North America, and Europe. It includes organic chemicals, petroleum goods, automobiles, iron & steel, textiles & carpets, machinery, handicrafts including leather goods, furniture, among others.