Stuck Ship Thrusts Sleepy Suez Canal Village into Limelight

Ever Given, a Panama-flagged cargo ship that is wedged across the Suez Canal and blocking traffic in the vital waterway is seen March 29, 2021 (AP)
Ever Given, a Panama-flagged cargo ship that is wedged across the Suez Canal and blocking traffic in the vital waterway is seen March 29, 2021 (AP)
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Stuck Ship Thrusts Sleepy Suez Canal Village into Limelight

Ever Given, a Panama-flagged cargo ship that is wedged across the Suez Canal and blocking traffic in the vital waterway is seen March 29, 2021 (AP)
Ever Given, a Panama-flagged cargo ship that is wedged across the Suez Canal and blocking traffic in the vital waterway is seen March 29, 2021 (AP)

The sleepy farming village of Amer overlooks the Suez Canal, one of the world’s most important waterways. Last week, the village was suddenly thrust into the limelight after a massive container ship, the Ever Given, got stuck nearby.

The contrast between tranquil village life and the busy artery of global shipping is stark.

Farmers in Amer eke out a living tending to small fields and livestock, while before them pass behemoths of world trade — vessels carrying millions of dollars’ worth of cargo.

But the canal is also a source of intense pride for residents of the area, including the nearby town of Suez. They call it “our canal” and the older ones still remember then-President Gamal Abdel Nasser’s decision in 1956 to nationalize the canal despite fierce pressure from Western powers.

“I was five or six years old, celebrations were everywhere,” said Abdel-Wahab, 71, who works as a waiter in Suez. “It was like you freed your son who was taken against your will.”

The village, along with other areas along the western bank of the canal, was abandoned during the 1967 Middle East war and its residents were only allowed to return in the 1970s.

They are now rooting for canal authorities as they battle to dislodge the vessel.

It was a windy morning when the Ever Given — one of the world’s largest container ships — got wedged sideways in a single-lane stretch of the canal last Tuesday.

Amer resident Fatima was feeding poultry on the roof of her three-story home when she saw the massive ship sitting motionless in the canal. At first, she didn’t think it was unusual.

“Sometimes, one vessel stops for a reason or another,” the elderly woman said Sunday,

Dressed in a dark blue jalabiya, or traditional loose-fitting garment, she was sitting at the gate of her house with a neighbor. The women were chatting and drinking tea.

Almost a week after the accident, tug boats and dredgers, taking advantage of high tides, partially floated the Ever Given on Monday, but it remains unclear how long it would take to set it free.

The pointed bow of the Panama-flagged, Japanese-owned vessel remains stuck on sandy clay along the canal bank. Experts said that despite the partial success, the worst option — having to remove containers from the vessel to lighten the load — is not yet off the table.

The giant ship carries some 20,000 containers. Taking them off would likely add even more days to the canal’s closure, further disrupting a global shipping network. A prolonged closure would cause delays in the global shipment chain. The canal handles some 10% of the world trade flow. Last year, some 19,000 vessels passed through it, according to official figures.

The closure could affect oil and gas shipments to Europe from the Middle East. Already, Syria has begun rationing the distribution of fuel in the war-torn country because of delayed shipments.

Over the past week, the salvage efforts have been the main topic of conversation in Amer, home to several thousand people who grow clover and cabbage and tend to water buffaloes, cows, goats and sheep.

“We have not seen anything like that before,” Abdel-Wahab, the waiter, said of the Ever Given’s misfortune.

Journalists have been visiting the village, in part to get a better view of the vessel.

“For sure, you’re coming for the ship,” whispered a farmer to a reporter. His donkey cart was sitting in the middle of a narrow road just a few dozen meters (yards) from the vessel.

“It’s there, standing like the mountain,” said another man when asked how to get closer to the ship.

Villager Mohammed Said, 72, who works in Suez as a garbage collector, said the grounding of the Ever Given is unique in the canal’s history, and that he hopes the vessel can be dislodged quickly.

“It’s a tragedy impacting not only Egypt, but the whole world,” he said.



What Happens When Russian Gas to Europe Via Ukraine Stops?

A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo
A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo
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What Happens When Russian Gas to Europe Via Ukraine Stops?

A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo
A view shows a board with the logo of Russian gas producer Gazprom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024. REUTERS/Anton Vaganov/File Photo

Austria's energy company OMV was informed by Gazprom that the Russian gas producer would halt deliveries of natural gas via Ukraine to OMV from 0500 GMT on Nov. 16 following OMV winning an arbitration case. Supplies of Russian gas to Europe via Ukraine may completely stop from Jan. 1 2025 after the current five-year deal expires as Kyiv has refused to negotiate the new terms of the transit with Moscow during the war.
Here is what happens if Russian gas transit via Ukraine is completely turned off and who will be affected most, according to Reuters.
HOW BIG ARE THE VOLUMES?
Russian gas supplies to Europe via Ukraine are relatively small. Russia shipped about 15 billion cubic meters (bcm) of gas via Ukraine in 2023 - only 8% of peak Russian gas flows to Europe via various routes in 2018-2019.
Russia spent half a century building its European gas market share, which at its peak stood at 35%.
Moscow lost its share to rivals such as Norway, the United States and Qatar since the invasion of Ukraine in 2022, prompting the EU to cut its dependence on Russian gas.
EU gas prices rallied in 2022 to record highs after the loss of Russian supplies. The rally won't be repeated given modest volumes and a small number of customers for the remaining volumes, according to EU officials and traders.
UKRAINIAN ROUTE
The Soviet-era Urengoy-Pomary-Uzhgorod pipeline brings gas from Siberia via the town of Sudzha - now under control of Ukrainian military forces - in Russia's Kursk region. It then flows through Ukraine to Slovakia.
In Slovakia, the gas pipeline splits into branches going to the Czech Republic and Austria.
Austria still receives most of its gas via Ukraine, while Russia accounts for around two-thirds of Hungary's gas imports.
Slovakia takes around 3 bcm from energy giant Gazprom per year, also about two-thirds of its needs.
Czech Republic almost completely cut gas imports from the east last year, but has started taking gas from Russia in 2024.
Most other Russian gas routes to Europe are shut including Yamal-Europe via Belarus and Nord Stream under the Baltic.
The only other operational Russian gas pipeline route to Europe is the Blue Stream and TurkStream to Türkiye under the Black Sea. Türkiye sends some Russian gas volumes onward to Europe including to Hungary.
WHY DOES THE UKRAINIAN ROUTE STILL WORK?
While remaining Russian gas transit volumes are small, the issue remains a dilemma for the EU. Many EU members such as France and Germany have said they would not buy Russian gas anymore but the stance of Slovakia, Hungary and Austria, which have closer ties to Moscow, challenges the EU common approach.
The countries, who still receive Russian gas, argue it is the most economic fuel and also blame neighboring EU countries for imposing high transit fees for alternative supplies.
Ukraine still earns $0.8-$1 billion in transit fees from Russian gas transit. Russia earns over $3 billion on sales via Ukraine based on an average gas price of $200 per 1,000 cubic meters, according to Reuters calculations.
Russia's gas pipeline export monopoly Gazprom plunged to a net loss of $7 billion in 2023, its first annual loss since 1999, because of the loss EU's gas markets.
Russia has said it would be ready to extend the transit deal but Kyiv has repeatedly said it won't do it.
Another option is for Gazprom to supply some of the gas via another route, for example via TurkStream, Bulgaria, Serbia or Hungary. However, capacity via these routes is limited.
The EU and Ukraine have also asked Azerbaijan to facilitate discussions with Russia regarding the gas transit deal, an Azeri presidential advisor told Reuters, who declined to give further details.