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Traffic in Suez Canal resumes after stranded ship refloated

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Reuters

Shipping traffic through Egypt’s Suez Canal resumed on Monday after a giant container ship that had been blocking the busy waterway for almost a week was refloated, Reuters reported, citing the canal authority.

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

Live footage on a local television station showed the ship surrounded by tug boats moving slowly in the center of the canal. The station, ExtraNews, said the ship was moving at a speed of 1.5 knots.

“Admiral Osama Rabie, the Chairman of the Suez Canal Authority (SCA), announces the resumption of maritime traffic in the Suez Canal after the Authority successfully rescues and floats the giant Panamanian container ship EVER GIVEN,” a statement from the SCA said.

“She’s free,” an official involved in the salvage operation said.

After dredging and excavation work over the weekend, rescue workers from the SCA and a team from Dutch firm Smit Salvage had succeeded in partially refloating the ship earlier on Monday using tug boats, two marine and shipping sources said.

Evergreen Line, which is leasing the Ever Given, confirmed the ship had been successfully refloated and said it would be repositioned and inspected for seaworthiness.

At least 369 vessels are 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, the SCA’s Rabie said.

The authority said earlier it would be able to accelerate convoys through the canal once the Ever Given was freed. “We will not waste one second,” Rabie told Egyptian state television.

He said it could take from two-and-a-half to three days to clear the backlog, and a canal source said more than 100 ships would be able to enter the channel daily. Shipping group Maersk said the knock-on disruptions to global shipping could take weeks or months to unravel.

Egyptian President Abdel Fattah al-Sisi, who had not publicly commented on the blockage, said Egypt had ended the crisis and assured resumption of trade through the canal.

Oil prices were about one percent lower at $63.95 a barrel. Shares of Taiwan-listed Evergreen Marine Corp – the vessel’s lessor – rose 1.75%.

About 15% of world shipping traffic transits the Suez Canal, which is an important source of foreign currency revenue for Egypt. The 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.

Maersk was among shippers rerouting cargoes around the Cape of Good Hope, adding up to two weeks to journeys and extra fuel costs.

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Afghanistan, Iran explore expansion of trade and transit via Chabahar Port

Officials described the visit as part of ongoing efforts to strengthen regional cooperation and establish reliable, cost-effective transit corridors for Afghan exports and imports.

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The Ministry of Industry and Commerce of the Islamic Emirate of Afghanistan says a technical delegation has completed a visit to Iran to assess transit and trade opportunities, emphasizing the expansion of commercial activity through the strategic Chabahar Port.

Abdul Salam Javad Akhundzada, the ministry’s spokesman, told Afghan Voice Agency (AVA) that the delegation examined Iran’s major transit routes, including the ports of Chabahar and Bandar Abbas, and held meetings with Iranian officials to discuss ways to strengthen trade connectivity between the two countries.

According to Akhundzada, the Afghan team conducted a comprehensive review of port operations, transit facilities, and transportation infrastructure, with its findings shared with Industry and Commerce Minister Nooruddin Azizi.

Azizi praised the delegation’s efforts and reiterated Kabul’s commitment to improving regional trade and logistics. “We are working seriously to expand trade routes and create greater facilities for Afghan traders,” he said, noting that leveraging regional transit opportunities remains a priority for Afghanistan’s economic development.

Officials described the visit as part of ongoing efforts to strengthen regional cooperation and establish reliable, cost-effective transit corridors for Afghan exports and imports.

The renewed focus on Chabahar—seen as a vital alternative to Pakistan’s ports—comes amid the continued closure of key Afghan-Pakistani border crossings due to recent security tensions.

Khan Jan Alokozai, a board member of the Afghanistan Chamber of Commerce and Investment, told AVA that the closures have disrupted trade flows through Pakistan, particularly at Karachi port. He urged that “trade and economic issues should be kept separate from political disputes” to ensure stability in regional commerce.

However, Alokozai added that if tensions with Pakistan persist, Afghanistan will prioritize alternative routes through Iran and Central Asia, including expanding cooperation via Chabahar, which provides access to global markets through the Arabian Sea.

The Chabahar Port, developed with Indian assistance, has long been viewed as a key regional hub offering landlocked Afghanistan a direct maritime link bypassing Pakistan.

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Ariana Airlines slashes cargo fees to boost Afghanistan’s trade

Ariana Airlines has been directed to acquire a dedicated cargo aircraft as soon as possible.

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In a significant development aimed at facilitating trade, the Economic Deputy of the Office of the Prime Minister, Mullah Abdul Ghani Baradar, announced new measures regarding cargo transport costs using Ariana Airlines.

Under the new decision, the cost of transporting export goods via Ariana Airlines has been reduced to $1 per kilogram, while the fee for importing commercial goods has been set at $0.80 per kilogram.

The Economic Deputy has also instructed the Ministries of Finance, Transport, and Civil Aviation to provide a 90 percent discount on their service fees for Ariana Airlines, further supporting the company’s operations.

In addition, Ariana Airlines has been directed to acquire a dedicated cargo aircraft as soon as possible to increase its capacity for transporting both export and import goods, thereby streamlining trade operations across the country.

Officials say these measures are expected to have a positive impact on Afghanistan’s economy, enhancing trade efficiency, boosting exports, and improving access to imported goods.

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Another US sanctions waiver for Iran port boosts India’s Afghanistan plan

According to reliable sources, the existing waiver expired on Tuesday, but following intensive negotiations, India succeeded in obtaining an extension from Washington.

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India has secured an extension of the US sanctions waiver for Iran’s Chabahar Port until early next year — a move that strengthens New Delhi’s regional connectivity strategy by providing a crucial gateway to Afghanistan, Central Asia, and parts of Eastern Russia.

According to reliable sources, the existing waiver expired on Tuesday, but following intensive negotiations, India succeeded in obtaining an extension from Washington. Indian officials emphasized the port’s strategic importance for the effectiveness of its regional connectivity and humanitarian initiatives.

Economic Times (ET) had earlier reported that New Delhi was seeking the extension after previously receiving a waiver valid until October 28. The US had initially planned to revoke the exemption by September 29 before allowing India to continue its operations under the renewed waiver.

In May 2024, India signed a 10-year agreement to operate the Chabahar Port with Iran’s Port and Maritime Organisation through Indian Ports Global Limited. The port has been central to India’s efforts to expand economic and humanitarian cooperation with Afghanistan, including the recent delivery of ambulances gifted during the Afghan foreign minister’s visit to New Delhi earlier this month.

The Islamic Emirate has also expressed interest in effectively utilizing the port to enhance its international engagement and trade access.

There are ongoing plans to link Chabahar Port with the International North-South Transport Corridor and with Central Asian nations. Uzbekistan — the world’s second doubly landlocked country after Liechtenstein — supports the initiative as part of its multipolar connectivity vision and seeks to diversify beyond China’s Belt and Road Initiative.

Sources further indicated that Russia, too, is exploring ways to use the Chabahar Port through Kazakhstan and Uzbekistan to facilitate trade with India and other Asian markets.

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