Suez Canal says traffic in channel resumes after stranded ship refloated

The giant container ship that blocked the Suez Canal for almost a week was fully floated on Monday and traffic in the waterway would resume, the canal authority said in a statement.

A Reuters witness saw the ship moving and a shipping tracker and Egyptian TV showed it positioned in the centre of the canal.

Ever Given, the massive container ship blocking Egypt's Suez Canal for nearly a week was partially refloated earlier on Monday, the Suez Canal Authority (SCA) said.

Suez Canal diverts ships to old channel after giant container ship runs aground

The 400-metre (430-yard) long Ever Given became jammed diagonally across a southern section of the canal in high winds early last Tuesday, halting shipping traffic on the shortest shipping route between Europe and Asia.

After further dredging and excavation over the weekend, efforts by rescue workers from the SCA and a team from Dutch firm Smit Salvage worked to free the ship using tug boats in the early hours of Monday, two marine and shipping sources said.

 Marine traffic through the canal will resume once the ship is directed to the Great Lakes area, a wider section of the canal.

At least 369 vessels were waiting to transit the canal, including dozens of container ships, bulk carriers, oil tankers and liquefied natural gas (LNG) or liquefied petroleum gas (LPG) vessels, SCA Chairman Osama Rabie said.

The ship's technical manager Bernhard Schulte Shipmanagement (BSM) did not immediately respond to a request to comment.

Suez Canal suspends traffic as ship stuck like 'beached whale'

Crude oil prices fell after news the ship had been re-floated, with Brent crude down by $1 per barrel to $63.67. Shares of Taiwan-listed Evergreen Marine Corp - the vessel's lessor - rose 3.3%.

About 15% of world shipping traffic transits the Suez Canal, which is a key source of foreign currency revenue for Egypt. The current stoppage is costing the canal $14-$15 million a day.

Shipping rates for oil product tankers nearly doubled after the ship became stranded, and the blockage has disrupted global supply chains, threatening costly delays for companies already dealing with Covid-19 restrictions.

Some shippers had decided to reroute their cargoes around the Cape of Good Hope, adding about two weeks to journeys and extra fuel costs.

The SCA has said it can accelerate convoys through the canal once the Ever Given is freed.