# Suez Canal suffers double blow from pandemic, collapse of oil prices | Mohamed Hammad | AW

> The Suez Canal faces lower traffic and competitiveness after the pandemic and a collapse in oil prices, with Brent falling to $19.33 a barrel in early April. Three major carriers in the 2M alliance plan to reroute some ships around the Cape of Good Hope. Yemen conflict and piracy near Bab el-Mandeb add costs.

- Date: 2020-05-22 · published 2020-05-22T12:00:00.000Z
- Category: logistics · region Global · magnitude low
- Page: https://feedsoft.ai/events/53022-suez-canal-suffers-double-blow-from-pandemic-collapse-of-oil-prices-mohamed
- Commodities: [Ocean Grain Freight](https://feedsoft.ai/c/OCEANFRT.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md)

## Why it matters

Rerouting around the Cape lengthens voyages and raises ocean freight demand for ships, while lower oil prices reduce bunker costs, leaving net freight effects mixed for grain movements.

## Read by commodity

- BRENT: bearish ▼
- OCEANFRT: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| BRENT | 2021-03-26 | [Ringgit falls as oil slumps due to Suez Canal blockage](https://feedsoft.ai/events/48388-ringgit-falls-as-oil-slumps-due-to-suez-canal-blockage.md) | +4.5% | +7.1% |
| BRENT | 2017-08-30 | [Oil prices continue downward trend triggered by Harvey - UPI.com](https://feedsoft.ai/events/69605-oil-prices-continue-downward-trend-triggered-by-harvey-upi-com.md) | +3.3% | +14.1% |
| BRENT | 2020-10-21 | [Why crude-tanker collapse could be long and painful - FreightWaves](https://feedsoft.ai/events/50806-why-crude-tanker-collapse-could-be-long-and-painful-freightwaves.md) | -4.6% | +1.8% |
| BRENT | 2025-11-17 | [Oil prices ease after loadings resume at Russian export hub \| Reuters](https://feedsoft.ai/events/22107-oil-prices-ease-after-loadings-resume-at-russian-export-hub-reuters.md) | -2.0% | -3.6% |
| BRENT | 2020-05-27 | [Shipping companies opt for Cape of Good Hope route more often](https://feedsoft.ai/events/53026-shipping-companies-opt-for-cape-of-good-hope-route-more-often.md) | +10.2% | +21.8% |

## Sources

- thearabweekly.com: https://thearabweekly.com/suez-canal-suffers-double-blow-pandemic-collapse-oil-prices

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.