The temporary closure of the Suez Canal after container ship Ever Given ran aground could lead to supply chain delays, particularly for European manufacturers and auto makers, according to a report by Moody’s Investors Service.
Supply chains across the world are already strained and “highly vulnerable” to even the smallest of external shocks due to a very high consumer and industrial demand, a global shortage of container capacity and low service reliability from global container shipping companies, the credit rating agency said.
The canal’s temporary blockage could exacerbate this as around 10 per cent to 15 per cent of the world's container throughput is expected to be affected, according to Moody's.
Europe's manufacturing and auto suppliers are expected to be hit most by the Suez Canal snarl since "they operate ‘just-in-time’ supply chains", Daniel Harlid, a vice president at Moody’s, said.
“This means they do not stockpile parts and only have enough on hand for a short period, and source components from Asian manufacturers.”
The Ever Given, a 200,000 deadweight-ton ship carrying 20,000 containers, got stuck in the Suez Canal on March 23 after high winds blew it off course – blocking a vital waterway for global trade.
Nearly 19,000 ships, or an average of 51.5 ships a day, pass through the canal with a net tonnage of 1.17 billion in 2020 alone, according to the Suez Canal Authority. Tariffs paid by ships entering the waterway are also a major source of income for Egypt.
The blockage could cost global trade $6 billion to $10bn a week, according to a study by German insurer Allianz on Friday.
Even if the situation is resolved within the next 48 hours, port congestion and further delays to an already constrained supply chain is inevitable
“Even if the situation is resolved within the next 48 hours, port congestion and further delays to an already constrained supply chain is inevitable,” Mr Harlid said.
Alternative modes of transportation are also out of the question since airfreight capacity is already tight owing to the coronavirus pandemic and rail transportation between China and Europe is very limited, the credit rating agency said.
The canal, which connects the Mediterranean to the Red Sea, provides the shortest sea link between Asia and Europe.
Ships that were about to enter the Suez Canal will soon need to decide whether to turn back and use the alternative, longer route around the Cape of Good Hope. That would “add around 10 days to their journey”, the report added.
“For carriers diverting their vessels around Africa instead of going through the Suez Canal, fuel costs will increase. However, spot freight rates will most likely increase or at least stop decreasing from their currently very high levels,” Mr Harlid said.
Moody’s does not expect the disruption caused by the Suze Canal blockage to affect Egypt’s balance of payments.
Suez Canal receipts amounted to almost 2 per cent of Egypt’s gross domestic product on average before the pandemic, providing a significant contribution to total current account receipts. However, Suez Canal receipts declined to 1.3 per cent of GDP during the acute phase of the pandemic, according to Moody’s.
“A temporary disruption will not materially change our expectation of a return to pre-crisis canal receipts as global trade recovers,” Mr Harlid said.
The Moody’s report added that oil-exporting countries in the Middle East that rely on the Canal for hydrocarbon exports “are unlikely to be affected in the absence of an extended disruption”.
MATCH INFO
Fixture: Ukraine v Portugal, Monday, 10.45pm (UAE)
TV: BeIN Sports
The%20Emperor%20and%20the%20Elephant
%3Cp%3E%3Cstrong%3EAuthor%3A%20%3C%2Fstrong%3ESam%20Ottewill-Soulsby%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPublisher%3A%20%3C%2Fstrong%3EPrinceton%20University%20Press%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPages%3A%20%3C%2Fstrong%3E392%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAvailable%3A%20%3C%2Fstrong%3EJuly%2011%3C%2Fp%3E%0A
The bio
Favourite book: Peter Rabbit. I used to read it to my three children and still read it myself. If I am feeling down it brings back good memories.
Best thing about your job: Getting to help people. My mum always told me never to pass up an opportunity to do a good deed.
Best part of life in the UAE: The weather. The constant sunshine is amazing and there is always something to do, you have so many options when it comes to how to spend your day.
Favourite holiday destination: Malaysia. I went there for my honeymoon and ended up volunteering to teach local children for a few hours each day. It is such a special place and I plan to retire there one day.
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
Getting%20there%20
%3Cp%3E%3Ca%20href%3D%22https%3A%2F%2Fwww.thenationalnews.com%2Ftravel%2F2023%2F01%2F12%2Fwhat-does-it-take-to-be-cabin-crew-at-one-of-the-worlds-best-airlines-in-2023%2F%22%20target%3D%22_self%22%3EEtihad%20Airways%20%3C%2Fa%3Eflies%20daily%20to%20the%20Maldives%20from%20Abu%20Dhabi.%20The%20journey%20takes%20four%20hours%20and%20return%20fares%20start%20from%20Dh3%2C995.%20Opt%20for%20the%203am%20flight%20and%20you%E2%80%99ll%20land%20at%206am%2C%20giving%20you%20the%20entire%20day%20to%20adjust%20to%20island%20time.%20%C2%A0%3C%2Fp%3E%0A%3Cp%3ERound%20trip%20speedboat%20transfers%20to%20the%20resort%20are%20bookable%20via%20Anantara%20and%20cost%20%24265%20per%20person.%20%C2%A0%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets
Fixtures (all in UAE time)
Friday
Everton v Burnley 11pm
Saturday
Bournemouth v Tottenham Hotspur 3.30pm
West Ham United v Southampton 6pm
Wolves v Fulham 6pm
Cardiff City v Crystal Palace 8.30pm
Newcastle United v Liverpool 10.45pm
Sunday
Chelsea v Watford 5pm
Huddersfield v Manchester United 5pm
Arsenal v Brighton 7.30pm
Monday
Manchester City v Leicester City 11pm
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Chef Nobu's advice for eating sushi
“One mistake people always make is adding extra wasabi. There is no need for this, because it should already be there between the rice and the fish.
“When eating nigiri, you must dip the fish – not the rice – in soy sauce, otherwise the rice will collapse. Also, don’t use too much soy sauce or it will make you thirsty. For sushi rolls, dip a little of the rice-covered roll lightly in soy sauce and eat in one bite.
“Chopsticks are acceptable, but really, I recommend using your fingers for sushi. Do use chopsticks for sashimi, though.
“The ginger should be eaten separately as a palette cleanser and used to clear the mouth when switching between different pieces of fish.”
'Gehraiyaan'
Director:Shakun Batra
Stars:Deepika Padukone, Siddhant Chaturvedi, Ananya Panday, Dhairya Karwa
Rating: 4/5
Heather, the Totality
Matthew Weiner,
Canongate
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
The specs: 2018 Nissan Altima
Price, base / as tested: Dh78,000 / Dh97,650
Engine: 2.5-litre in-line four-cylinder
Power: 182hp @ 6,000rpm
Torque: 244Nm @ 4,000rpm
Transmission: Continuously variable tranmission
Fuel consumption, combined: 7.6L / 100km
