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If we count only missed revenues for Egypt, this incident cost them about US$100 million. Canal revenues were US$27.2 billion in the last 5 years (https://www.r
by mrb 6y ago
If we count only missed revenues for Egypt, this incident cost them about US$100 million. Canal revenues were US$27.2 billion in the last 5 years (https://www.reuters.com/article/egypt-economy-suezcanal/egypts-suez-canal-revenues-up-4-7-in-last-5-years-chairman-idUSL8N2F84GW https://www.reuters.com/article/egypt-economy-suezcanal/egyp...) which is US$15 million in revenues per day, and the canal was closed for 7 days.
- Reason077 6y agoIt’s probably less than that because many transits would have just been delayed, not entirely cancelled.
- foobarbaz33 6y agoThey run the canal at maximum capacity indefinitely. Due to the lack of downtime, any delays are in effect the same thing as a cancel from the perspective of the canal owners.
- Reason077 6y agoAccording to reports, the backlog of traffic should be cleared in about 10 days. They must have some spare capacity available in order to do that.
- matkoniecz 6y agoMaybe backlog will be cleared as result of some ships taking route around Africa?
- foobarbaz33 6y agoThe canal was blocked for only 6 days. Then 10 days to clear would suggest the opposite, that there is not spare capacity. All shippers have to eat a permanent delay that will never be caught backup, everyone is 10 days behind forever. And re-routes around Africa don't count as spare capacity for the canal itself. Of course there may be some *literal* spare capacity, that could be realized by violating processes. But the canal is in fact run at maximum capacity according to the maximum that official process allows.
- distrill 6y ago> They run the canal at maximum capacity indefinitely We have to stop doing this with all of our critical systems, it causes hiccups to be so costly.
- kccqzy 6y agoLow utilization can be even more costly.
- faeyanpiraat 6y agoBut building everything to have a higher capacity also wastes a lot of resources! It is a balancing game.
- s1artibartfast 6y agoWhat is so critical about the Suez Canal. If it were down for a month/year. what do you think the impacts would be? Would most ship traffic simply go around Africa?
- KineticLensman 6y agoAccepting that globalization wasn't such a big thing then, the closure between 1967 and 1975 would be a good source of objective 'what actually happened' data.
- gbronner 6y agoWe'd have to build a lot more ships and containers and burn a lot more fuel. Consumer prices would be higher, and some products wouldn't be on shelves
- anticristi 6y agoLike having nurses and doctors idling around, just in case a pandemic appears out of nowhere?