Overnight on Tuesday, the container Ship Ever Given ran aground in a southern part of the Suez Canal, a rare event in the history of the waterway. The potential for a rapid build-up of liquid and gas tankers in the region is marked with multiple laden vessels now indicating delays for Suez transit. As of Wednesday morning there were seven vessels carrying crude, 15 carrying refined products, five LNG vessels and two LPG carriers either sat waiting or approaching the canal. While attempts to clear the ship from the canal continue, this queue will continue to build. A salvage squad from the Netherlands will attempt to dislodge the ship beginning Thursday.
Congestion events can impact supply and demand and become a major issue for all market players. Being able to identify them on time can provide an edge in the trading process.