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Cargo Ship Runs Aground in Suez Canal, Traffic Not Impacted

This is a locator map for the Suez Canal and the Sinai Peninsula in Egypt, with its capital, Cairo. (AP Photo)
This is a locator map for the Suez Canal and the Sinai Peninsula in Egypt, with its capital, Cairo. (AP Photo)
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Cargo Ship Runs Aground in Suez Canal, Traffic Not Impacted

This is a locator map for the Suez Canal and the Sinai Peninsula in Egypt, with its capital, Cairo. (AP Photo)
This is a locator map for the Suez Canal and the Sinai Peninsula in Egypt, with its capital, Cairo. (AP Photo)

A cargo vessel ran aground in the Suez Canal on Sunday, but traffic through the global waterway was not impacted, Egyptian authorities said.

The Liberia-flagged MSC Istanbul, heading to Portugal from Malaysia, got stuck in a two-lane part of the Suez Canal, said Adm. Ossama Rabei, head of the Suez Canal Authority. He added that tugboats were deployed to help refloat the vessel.

Despite the situation, convoys were transiting through the waterway without any problems, Rabei said, without elaborating on what had caused the ship to run aground.

The Suez Canal allows for passage of two convoys of vessels a day in both directions. Later Sunday and after a five-hour effort, the MSC Istanbul was refloated.

Built in 2015 and operated by the Geneva-based Mediterranean Shipping Company, the MSC Istanbul is 399 meters (1,309 feet) long and 54 meters (177 feet) wide, according to Marine Traffic, a vessel tracking firm.

The vessel’s length is similar to that of the Ever Given, a colossal container ship that crashed into a bank on a single-lane stretch of the canal in March 2021, blocking the waterway. A massive salvage effort by a flotilla of tugboats helped by the tides freed the skyscraper-sized vessel six days later, ending the crisis, and allowing hundreds of waiting ships to pass through the canal.

After it was freed, the Ever Given was held for more than three months in Egypt amid a financial dispute with authorities. Its release came after its owner reached a settlement with canal authorities over compensation following weeks of negotiations and a court standoff. Officials did not reveal details on the terms of the settlement but canal authorities had sought more than $900 million in compensation.

The canal’s blockage forced some ships at the time to take the lengthy alternate route around the Cape of Good Hope at Africa’s southern tip, requiring additional fuel and other costs. Hundreds of other ships waited in place for the blockage to end.

Sunday’s incident was the latest case of a vessel reported stuck in the key global waterway. A tanker transporting liquefied natural gas broke down in the canal last month, also without impacting traffic. In January, a cargo ship carrying corn went aground before being refloated; after a while, traffic through the waterway was restored.

The canal, opened in 1869, provides a crucial link for oil, natural gas and cargo. About 10% of world trade flows through the canal, a major source of foreign currency for Egypt.

According to the Suez Canal Authority, last year, 23,851 vessels passed through the waterway, compared to 20,649 vessels in 2021. The revenue from the canal in 2022 reached $8 billion, the highest in the Suez Canal’s history.

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US Solar Tariffs Could Drive Asia Transition Boom

Massive new tarrifs could hit solar panels made in Southeast Asia from June. (AFP)
Massive new tarrifs could hit solar panels made in Southeast Asia from June. (AFP)
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US Solar Tariffs Could Drive Asia Transition Boom

Massive new tarrifs could hit solar panels made in Southeast Asia from June. (AFP)
Massive new tarrifs could hit solar panels made in Southeast Asia from June. (AFP)

Massive planned US duties on solar panels made in Southeast Asia could be a chance for the region to ramp up its own long-stalled energy transition, experts say.
Earlier this month, Washington announced plans for hefty duties on solar panels made in Cambodia, Vietnam, Thailand and Malaysia.
The levies follow an investigation, launched before US President Donald Trump took office, into "unfair practices" in the countries, particularly by Chinese-headquartered firms, AFP said.
If approved next month, they will pile upon tariffs already imposed by the Trump administration, including blanket 10-percent levies for most countries, and 145 percent on Chinese-made goods.
For the US market, the consequences are likely to be severe. China makes eight out of every 10 solar panels globally, and controls 80 percent of every stage of the manufacturing process.
The new tariffs "will practically make solar exports to US impossible commercially", said Putra Adhiguna, managing director at the Energy Shift Institute think tank.
Southeast Asia accounted for nearly 80 percent of US solar panel imports in 2024.
And while investment in solar production has ramped up in the United States in recent years, the market still relies heavily on imported components.
For Chinese manufacturers, already dealing with a saturated domestic market, the raft of tariffs is potentially very bad news.
Many shifted operations to Southeast Asia hoping to avoid punitive measures imposed by Washington and the European Union as they try to protect and nurture domestic solar industries.
The proposed new duties range from around 40 percent for some Malaysian exports to an eye-watering 3,521 percent for some Cambodia-based manufacturers.
- Tariffs 'accelerate' transition -
But there may be a silver lining for the region, explained Ben McCarron, managing director at Asia Research & Engagement.
"The tariffs and trade war are likely to accelerate the energy transition in Southeast Asia," he said.
China will "supercharge efforts" in regional markets and push for policy and implementation plans to "enable fast adoption of green energy across the region", driven by its exporters.
Analysts have long warned that countries in the region are moving too slowly to transition from planet-warming fossil fuels like coal.
"At the current pace, it (Southeast Asia) risks missing out on the opportunities provided by the declining costs of wind and solar, now cheaper than fossil fuels," said energy think tank Ember in a report last year.
For example, Malaysia relied on fossil fuels for over 80 percent of its electricity generation last year.
It aims to generate 24 percent from renewables by 2030, a target that has been criticized as out of step with global climate goals.
The tariff regime represents a double opportunity for the region, explained Muyi Yang, senior energy analyst at Ember.
So far, the local solar industry has been "largely opportunistic, focused on leveraging domestic resources or labor advantages for export gains", he told AFP.
Cut off from the US market, it could instead focus on local energy transitions, speeding green energy uptake locally and driving a new market that "could serve as a natural hedge against external volatility".
Still, replacing the US market will not be easy, given its size and the relatively nascent state of renewables in the region.
"Success hinges on turning this export-led momentum into a homegrown cleantech revolution," said Yang.
"Clearance prices" may be attractive to some, but countries in the region and beyond may also be cautious about a flood of solar, said Adhiguna.
Major markets like Indonesia and India already have measures in place intended to favor domestic solar production.
"Many will hesitate to import massively, prioritizing trade balance and aims to create local green jobs," he said.