LCB Interview with Matt Frei: John Denholm Continues the Discussion on the Suez Canal Obstruction

27th March 2021 | Economy, Industry trends

The blockage by the “Ever Green” at the Suez Canal continues.  The huge container ship remains stuck in the waterway, after an attempt to unwedge the vessel during high tide on Sunday failed.  The continuing saga not only has the full attention of the shipping industry, it has also captivated the interest of the wider general public.

On Saturday morning, J. & J. Denholm Chairman and UK Chamber of Shipping President, John Denholm, was invited on LBC’s current affairs programme, hosted by journalist Matt Frei, to discuss the impasse and the wider consequences.

When asked about the tide at the Suez Canal, John Denholm explained, “The level [of the water] in the Suez Canal goes up and down but not by a huge amount.  With the salvors digging around the bit where she is aground, along with tugs, the hope is that they can pull her off the sand.  That is the best hope for a quick resolution to the problem.  The lifting moment of a tide is quite important and getting that little bit of lift, up off the bottom, creates the opportunity.  Let’s hope it works.”

John Denholm confirmed that no ships owned by J. & J. Denholm are currently stuck in the canal.  However, Matt Frei pointed out the real danger of ships in the ensuing traffic jam piling up even more if the blockage is not resolved quickly.  The alternative route for ships to take is round the Cape of Good Hope but, as John Denholm explained, it is not a straightforward decision.

“These ships are not just coming from the Far East to the UK, they are making various port calls along the way.  They will have drop-off calls in the Mediterranean and so diverting a ship is a difficult decision.  That said, the liner companies are the servants of world trade.  They know they’ve got to get the goods through and they are already beginning to divert ships round the Cape of Good Hope.  However, it will take at least ten additional days, probably more.  It all depends where you divert it from.  It is a significant time delay but it gets the goods to where they want to go.”

Matt Frei commented on “an extraordinary picture in the papers” a few days ago of a rather large digger, dwarfed by the “Ever Given”, digging at the sand in an attempt to re-float the ship.  What is the science behind the digging and is it actually working?

John Denholm: “She is stuck at either end on the sand and what the salvors are trying to do is to dig and undermine the sand where she is stuck.  It’s basic stuff.  She’s a huge ship and there is a huge amount of sand to move but every time there is a slight rise in the water level, they’ll be seeing if they can move her and will keep digging.  The alternative is to bring in equipment to start making her lighter.  You’ll see how tall she is; I estimate they need a crane that is 200 feet high to lift the containers off, this is not a small piece of equipment.”

As the attempt to unwedge the “Ever Given” during high tide failed on Sunday, despite its size, bringing in this large piece of equipment may be the increasingly called-for option.  The world continues to look on, bemused and intrigued.

BBC Radio 4 Interview: John Denholm Comments On Suez Canal Blockage

26th March 2021 | Economy, Industry trends

Four days ago, the “Ever Given” container ship, which is the length of four football pitches, became wedged across the width of the Suez Canal.  As lines of ships become increasingly backed up along the canal, estimates of £7 billion worth of goods per day are being held up.

In an interview with Mishal Husain on BBC Radio 4’s ‘Today’ programme, J. & J. Denholm Chairman, John Denholm, who is also President of the UK Chamber of Shipping, shared his perspective on how the situation might be resolved.

John Denholm explained, “The container lines face a really difficult decision here.  Do they divert their ships around the Cape of Good Hope, adding more than ten days to their trip, or do they wait to see if the canal can be opened quickly.  The options for getting the ship out are fairly straightforward.  It’s either diggers and tugs, which could be a relatively quick solution, or they’ve got to start lightering the ship.  That means finding the equipment, such as cranes, lighter barges, tanker barges, getting them there, and then starting the slow process of taking the cargo off the ship.”

Since the ‘diggers and tugs’ option is essentially what has been used so far, Mishal Husain asked if it is worth pressing on, or whether it is time to go to the unloading option.

John Denholm responded, “I think it is probably worth them pressing on with it until starting the unloading option is a reality.  If they can move more powerful tugs in, I suspect they can get more diggers in.  If it works, it’s a relatively quick fix. The unloading option would take much longer.”

While there is no port along the Suez Canal with the equipment required to lighter the “Ever Given”, John Denholm said that there is a lot of marine construction equipment in the Mediterranean and the Gulf.  “The salvors are experts at pulling this equipment together in short time, mobilising it and getting it to where it is needed.  It is a difficult conundrum but you can get it through by sea.  However, think of the height of the “Ever Given”; a crane to lift containers off the ship is going to have to stretch more than 200 feet high.  This is a big crane.”

When asked about timescales, John Denholm’s view is, “If we go through the lightering process, I suspect we’re talking weeks.  Therefore, it’s worth pursuing the tugs and digger process.”

Update: By the time John Denholm spoke again to the ‘Today’ programme on Monday 29th March, the stern of the “Ever Given” had been freed from the canal bank.  The traffic was once again able to flow through the canal and the focus was on how it happened and how long it would take to get back to normal.  In response to a question from Nick Robinson, John Denholm said there would be delays but the container lines did the right thing in diverting their ships and he did not think they would affect supplies to the consumer.

Gold Sponsor of UK Chamber of Shipping’s First Virtual Conference

7th February 2021 | Economy, Shipping, Sponsorship

Denholm Shipping Company is pleased to be a Gold Sponsor for the UK Chamber of Shipping’s first ever Virtual Conference: Creating Pathways to 2030.

The virtual conference, which takes place on Thursday 11th February, will feature a key note speech from Shipping Minister Robert Courts MP and will see industry leaders come together and look at the key challenges facing the UK shipping industry. The conference aim is to generate pathways for the next decade that will enable progress to be measured towards safer and cleaner shipping.

Denholm Shipping Company will sponsor the President’s Reception, where Chamber President John Denholm will welcome delegates and start the day’s proceedings.

Commenting on the partnership, Ben MacLehose, Managing Director, Denholm Shipping Company and Chief Executive of parent company J. & J. Denholm, said: “The UK Chamber of Shipping is the voice for the UK shipping industry and the theme of its first virtual conference, ‘Creating Pathways to 2030’, will be pivotal in ensuring the UK remains a leader in the global maritime industry.  As a UK-based shipping company operating in the global market, Denholm Shipping Company is delighted to play such a prominent role in supporting this important agenda.”

Tony Jerome, Head of Business Development said: “We would like to thank Denholm Shipping Company for sponsoring the President’s ‘Welcome’ at the Chamber’s Virtual UK Shipping Conference. The President’s ‘Welcome’ will brief delegates on what the Chamber has been working on over the last 12 months and set the scene for the day’s event. Without this kind support, the Chamber would not be able to deliver these high-profile and important events where leading industry figures can debate the key issues facing the UK shipping industry over the next decade.”

The Virtual Conference is a full day event and will be moderated by industry expert Paddy Rodgers. Tickets are free for members of the UK Chamber of Shipping and £50 for non-members. Tickets can be purchased here.