The government of Syria has said that it will begin rationing the use of fuel after the closure of the Suez Canal delayed the delivery of a critica
The government of Syria has said that it will begin rationing the use of fuel after the closure of the Suez Canal delayed the delivery of a critical shipment of oil to the war-torn nation.
With the log of ships now stuck outside the canal growing to over 300 on Sunday, the threat to the oil supply in Syria was an early indication of the rapidly expanding and escalating ripple effects caused by the disruption of trade through the vital maritime artery.
Already, shipping analysts estimated, the colossal traffic jam was holding up nearly $10 billion in trade every day.
“All global retail trade moves in containers, or 90 percent of it,” said Alan Murphy, the founder of Sea-Intelligence, a maritime data and analysis firm. “Name any brand name, and they will be stuck on one of those vessels.”
Virtually every container ship making the journey from factories in Asia to consumer markets in Europe passes through the channel. So do tankers laden with oil and natural gas.
The shutdown of the canal is affecting as much as 15 percent of the world’s container shipping capacity, according to Moody’s Investor Service, leading to delays at ports around the globe. Tankers carrying 9.8 million barrels of crude, about a tenth of a day’s global consumption, are now waiting to enter the canal, estimates Kpler, a firm that tracks petroleum shipping.
The Syrian Ministry of Petroleum and Mineral Resources said the blockage of the canal had “hindered the oil supplies to Syria and delayed arrival of a tanker carrying oil and oil derivations to Syria.”
The rationing was needed, the ministry said in a statement, “in order to guarantee the continued supply of basic services to Syrians such as bakeries, hospitals, water stations, communication centers, and other vital institutions.”