Tag Archives: Suez

With ship now freed, a probe into Suez Canal blockage begins

SUEZ, Egypt (AP) — Experts boarded the massive container ship Tuesday that had blocked Egypt’s vital Suez Canal and disrupted global trade for nearly a week, seeking answers to a single question that could have billions of dollars in legal repercussions: What went wrong?

As convoys of ships again began traveling through the artery linking the Mediterranean and Red Seas, a canal service provider said more than 300 vessels carrying everything from crude oil to cattle were still waiting for their turn in a process that will take days. Egyptian government officials, insurers, shippers and others similarly waited for more details about what caused the skyscraper-sized Ever Given to become wedged across the canal on March 23.

When blame gets assigned, it will likely lead to years of litigation to recoup the costs of repairing the ship, fixing the canal and reimbursing those who saw their cargo shipments disrupted. Since the vessel is owned by a Japanese firm, operated by a Taiwanese shipper, flagged in Panama and now stuck in Egypt, matters quickly become an international morass.

“This ship is a multinational conglomeration,” said Capt. John Konrad, the founder and CEO of the shipping news website gcaptain.com.

Experts boarded the Ever Given as it idled Tuesday in Egypt’s Great Bitter Lake, just north of the site where it previously blocked the canal. A senior canal pilot, speaking on condition of anonymity because he was not authorized to talk to journalists, told The Associated Press that experts were looking for signs of damage and trying to determine why the vessel ran aground.

There could be significant damage to the the ship, Konrad warned. Stuck for days across the canal, the ship’s middle rose and fell with the tide, bending up and down under the tremendous weight of some 20,000 containers across its 400-meter (quarter-mile) length. On Monday, when workers partially floated the ship, all that pressure came forward to its bow.

“Structural integrity is No. 1. You know, there was a lot of strain on that ship as it was sagging in the waterway,” Konrad said. “They have to check everything for cracks and particularly that rudder and the propeller in the back that’s connected to the engine room.”

“And then they have to go through all the mechanical equipment, make sure they test the engines, all the safety valves, all the equipment, and then determine that it’s safe to sail either by itself or with a tug escort to the next port,” he added.

The ship’s owner, Shoei Kisen Kaisha Ltd., said Tuesday that it would be part of the investigation along with other parties, though it did not identify them by name. It also refused to discuss possible causes of the grounding, including the ship’s speed and the high winds that buffeted it during a sandstorm, saying it could not comment on an ongoing investigation. Initial reports also suggested a “blackout” struck the vessel, something denied by the ship’s technical manager.

The company added that any damage to the ship was believed to be mostly on its keel. It said it was not immediately known whether the vessel will be repaired on site in Egypt or elsewhere, or whether it will eventually head to its initial destination of Rotterdam. That is a decision to be made by its operator, rather than the shipowner, the company said.

The grounding of the ship had halted billions of dollars a day in maritime commerce. Analysts expect it could take at least another 10 days to clear the backlog — though Egypt’s president said Tuesday it would take just three. The losses to shippers, as well as any physical damage to the vessel itself, likely will see lawsuits.

Shoei Kisen Kaisha Ltd. is covered with some $3 billion in liability insurance through 13 Protection & Indemnity Clubs. Those clubs are not-for-profit mutual insurers used by the vast majority of global shipping firms.

Global legal firm Clyde and Co. said the Ever Given’s owner likely would pay Egypt’s canal authority for the assistance already rendered to the vessel. The authority also could fine the Ever Given.

“We anticipate a detailed investigation will follow which will determine the cause,” the firm said. ”Evidently the cause will impact upon the legal liabilities of the ship and cargo interests.”

Egyptian President Abdel Fattah el-Sissi traveled Tuesday to the canalside city of Ismailia to praise those who freed the vessel.

Speaking to a small group of reporters on a dock overlooking the waterway, el-Sissi deflected questions about the investigation, saying Egypt would not interfere in a probe that will be left to “the specialists.”

“We want to confirm to all the world, that things are back to as they were,” he added. He stood before a sign that said: “Welcome to the Suez Canal: Egypt’s lifeline of peace, prosperity and development.”

On Monday, a flotilla of tugboats helped by the tides, wrenched the bulbous bow of Ever Given from the canal’s sandy bank, where it had been firmly lodged. The tugs blared their horns in jubilation as they guided the Ever Given through the water after days of futility that had captivated the world, drawing scrutiny and social media ridicule.

The Ever Given had crashed into a bank of a single-lane stretch of the canal about 6 kilometers (3.7 miles) north of the southern entrance, near the city of Suez. That forced some ships to take the long, alternate route around the Cape of Good Hope at Africa’s southern tip — a 5,000-kilometer (3,100-mile) detour that costs ships hundreds of thousands of dollars in fuel and other costs.

The unprecedented shutdown, which raised fears of extended delays, goods shortages and rising costs for consumers, added to strain on the shipping industry already under pressure from the coronavirus pandemic.

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Gambrell reported from Dubai, United Arab Emirates. Associated Press writers Mari Yamaguchi in Tokyo and Isabel DeBre in Dubai contributed to this report.

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Suez Canal: The full ‘worm moon’ helped break the logjam

Container ship freed in Suez Canal

Children celebrate after the Ever Given container ship was freed in the Suez Canal on Monday, March 29.

Container ship freed in Suez Canal

This satellite image was taken on Monday after the ship was dislodged.

Container ship freed in Suez Canal

The Ever Given is accompanied by tugboats as it moves through the canal on Monday.

Container ship freed in Suez Canal

People watch the newly refloated Ever Given on Monday.

Container ship freed in Suez Canal

This satellite image shows the ship stuck in the Suez Canal on Sunday.

Container ship freed in Suez Canal

Tugboats try to free the ship on Sunday.

Container ship freed in Suez Canal

Workers try to dislodge the ship on Sunday.

Container ship freed in Suez Canal

A tugboat operates on the Ever Given on Sunday.

Container ship freed in Suez Canal

A woman walks with children near the ship on Saturday.

Container ship freed in Suez Canal

A nighttime view of the massive container ship on Saturday.

Container ship freed in Suez Canal

A boy watches a couple of tugboats trying to free the Ever Given on Friday.

Container ship freed in Suez Canal

The enormous ship can hold up to 20,000 containers.

Container ship freed in Suez Canal

A tugboat works alongside the Ever Given on Friday.

Container ship freed in Suez Canal

Ships anchored outside the Suez Canal in Ismailia, Egypt, on Thursday. Ships couldn’t get through while the Ever Given was blocking the route.

Container ship freed in Suez Canal

An excavator removes mud and sand from around the bow of the Ever Given on Thursday.

Container ship freed in Suez Canal

Ships wait in Egypt’s Great Bitter Lake on Thursday.

Container ship freed in Suez Canal

Lt. Gen. Ossama Rabei, the head of the Suez Canal Authority, watches the Ever Given from another vessel on Thursday.

Container ship freed in Suez Canal

Tugboats sit alongside the Ever Given on Thursday.

Container ship freed in Suez Canal

This satellite image shows the blocked canal on Thursday.

Container ship freed in Suez Canal

The Ever Given’s bow is wedged in the mud and sand along the banks of the canal n Wednesday.

Container ship freed in Suez Canal

At 1,312 feet, the Ever Given is almost as long as the Empire State Building.

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First ship passes through Suez Canal after cargo vessel freed

The first cargo ship has successfully passed through the entirety of the Suez Canal since the waterway reopened after a nearly-weeklong shutdown due to the grounding of the massive cargo vessel “Ever Given.”

The New York Times reported that a Hong Kong-flagged cargo ship identified as the “YM Wish” was the first vessel allowed through the canal and exited the southern end headed for the port of Jeddah around 9:15 p.m. EDT in the U.S. It was headed to the Red Sea and Jedda, the Saudi Arabian port city.

A ship tracking website, MarineTraffic.com, counted numerous ships traveling through the canal Monday evening following the YM Wish’s successful voyage. 

The Suez had been closed since last Tuesday after the Ever Given became grounded in the waterway at a perpendicular angle, successfully blocking traffic in both directions. Workers in tugboats, dredgers and excavators labored for nearly a week to free the vessel, which was finally refloated early Monday with the help of a higher-than usual high tide.

A Navy spokesperson acknowledged on Sunday that the growing backlog of vessels and the canal’s closure was having an unspecified impact on U.S. Naval efforts, while an analysis first reported by CNBC last week estimated that $400 million in global trade was being delayed every hour that the Suez was closed.



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Ship stuck in Suez Canal “successfully refloated,” Egyptian officials say

Suez, Egypt — The colossal container ship that spent almost a week wedged across the Suez Canal was “successfully refloated” and on the move again on Monday, according to Egypt’s canal authority and an agency that helps run the shipping channel, but it was unclear when the logjam of ships at either end of the critical waterway might be cleared.

A statement posted on Monday morning to the Egyptian government’s Suez Canal Authority (SCA), attributed to chairman and director Admiral Osama Rabie, said the MV Ever Given “has been successfully refloated. This was the result of successful push and tow maneuvers which led to the restoration of 80% of the vessel’s direction.”

The cargo ship MV Ever Given, one of the world’s largest container ships, is seen after it was fully refloated in the Suez Canal, Egypt, March 29, 2021.

Suez Canal Authority


High tide later on Monday morning appeared to help crews move the hulking ship back into the center of the canal, and a statement posted online by the Leth agency, which provides myriad services for the canal in partnership with the SCA, said later that the Ever Given was “now underway to Great Bitter Lake,” a holding lake in the middle of the canal. That northerly movement suggested that all canal traffic could soon resume, and the SCA said it would hold a news conference at 8 p.m. local time (2 p.m. Eastern) to give an update on the movement of other vessels. 

“His Excellency, Admiral Rabie, would like to reassure the international navigation society as navigation shall be resumed immediately upon the complete restoration of the vessel’s direction and directing it to the Bitter Lakes waiting area for technical inspection,” the SCA said in its earlier statement.  

There was no immediate confirmation of reports that other vessels had begun transiting the canal again with the Ever Given making its way toward the Great Bitter Lake.

As CBS News correspondent Charlie D’Agata reports, even when the canal does open back up, the backup has already caused significant disruption. 

“Even when it starts to flow again there’s going to be some days to clear that backlog, so you got those knock on effects all the way through the supply chain,” said Guy Platten, Secretary General of the International Chamber of Shipping. “You’ve got to remember that ships carry just about everything from medical equipment to food to grain to fuel to all the other things in between.”  

Global marine services provider Inchcape Shipping was the first to say the Ever Given had been freed early on Monday morning. Inchcape said in a tweet that the Ever Given was “being secured at the moment. More information about next steps will follow once they are known.” The tweet included a diagram appearing to show the ship partially straightened.


Suez Canal’s blockage impact on world trade

03:15

Nearly a week ago, the skyscraper-sized Ever Given got stuck sideways in the crucial waterway, creating a massive traffic jam. The obstruction has been holding up $9 billion each day in global trade and straining supply chains already burdened by the coronavirus pandemic.

As of Monday, 367 vessels, carrying everything from crude oil to cattle, were still waiting to pass through the canal, while dozens more are taking the alternate route around the Cape of Good Hope at Africa’s southern tip, adding around two weeks to journeys and threatening delivery delays.

The freeing of the vessel came after intensive efforts to push and pull the vessel with 10 tugboats when the full moon brought spring tide, Leth Agencies said, raising the canal’s water level and hopes for a breakthrough.

The MV Ever Given, a Panama-flagged cargo ship wedged across the Suez Canal and blocking traffic in the vital waterway, is seen on March 26, 2021.

Mohamed Elshahed/AP


Overnight, several dredgers had toiled to vacuum up 27,000 cubic meters of sand and mud around the ship. Another powerful tugboat, Carlo Magno, was racing to the scene to join the efforts.

Although the vessel is vulnerable to damage in its current position, Shoei Kisen Kaisha Ltd., the company that owns the Ever Given, dismissed concerns on Monday, saying that the ship’s engine was functional and it could pursue its trip normally when freed.

Canal authorities have desperately tried to free the vessel by relying on tugs and dredgers alone, even as analysts warned that 1,300-feet-long ship, weighing some 220,000 tons, may be too heavy for such an operation. As a window for a breakthrough narrowed with high tide receding this week, fears had grown that authorities would be forced to lighten the vessel by removing some of the ship’s 20,000 containers — a complex operation, requiring specialized equipment not found in Egypt, that could take days or weeks.



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Stocks dip as Archegos margin call ricochets across markets; Suez ship freed

Wall Street opened lower on Monday, giving back part of last week’s gains, as the sudden unwinding of a hedge fund ricocheted across markets.

On Friday, the S&P 500, Dow and Nasdaq closed higher by more than 1%, with the broader market posting its best in three weeks. However, traders were watching several big stocks like Viacom (VIA) and Discovery (DISC), after a volatile session on Friday saw several names take a hit linked to liquidation by Bill Hwang, a fund manager and the ex-head of Tiger Management’s family office.

Bloomberg News reported that Hwang’s firm, Archegos Capital Management, was forced by its banks to sell more than $20 billion worth of shares after some positions moved against him. In a related move, Swiss banking giant Credit Suisse (CS) warned that the volatility stemming from the firm’s liquidation would force the bank to take a “highly significant” hit to its first quarter results.

The week will be mostly quiet until Friday, when the March jobs report is released. The data are expected to show the economy created a whopping 630,00 jobs — the most since October 2019 and the best the onset of the COVID-19 pandemic.

Markets were largely calm amid news that the massive ship marooned in the Suez Canal was finally dislodged after nearly a week, which should pave the way for ending the blockage that’s created a shipping traffic jam in one of the world’s most important shipping lanes. Efforts there had put upward pressure on oil and natural gas prices, given that the canal is a busy thoroughfare for energy exports.

The past couple weeks have been marked by choppy equity trading, especially heading into some of the final sessions of the first quarter. But overall, the cyclical energy, financials and industrials sectors – or the biggest under-performers of 2020 – have outperformed strongly for the year-to-date, while last year’s leading technology companies have lagged. Signs of improving economic growth have trickled in, with Thursday’s bigger-than-expected drop in new unemployment claims to a pandemic-era low among the latest positive reports.

A prevailing concern for many investors, however, has in fact been centered on the pace of economic expansion, and whether the stimulus-aided post-pandemic recovery might barrel forward even more vigorously than expected and stir up rapid inflation. In the wake of passing a $2 trillion stimulus package, the Biden administration is gearing up for even more spending — and the likelihood of higher taxes.

“You can be sure the spending with have a multiplier less than zero and tax increases are always an economic drag with the extent the only difference,” noted Peter Boockvar, Chief Investment Officer at Bleakley Advisory Group.

Still, Federal Reserve policymakers have recently tried to assuage market participants’ fears over a sharp rise in inflation. On NPR’s Morning Edition Thursday, Fed Chair Jerome Powell reaffirmed that the Fed remained strongly committed to targeting 2% average inflation over time, and said that any eventual pullback in Fed support would be done “gradually, over time, and with great transparency.”

10:15 a.m. ET: Suez canal traffic resumes, Reuters reports

Ship Ever Given, one of the world’s largest container ships, is seen after it was fully floated in Suez Canal, Egypt March 29, 2021. REUTERS/Mohamed Abd El Ghany

Per Reuters, the dislodging of the Ever Given — the hapless ship that was beached in the Suez Canal for nearly a week — has allowed the resulting traffic jam to clear, the canal authority said in a statement on Monday:

A Reuters witness saw the ship moving and a shipping tracker and Egyptian TV showed it positioned in the center of the canal.

9:30 a.m. ET: Stocks open to the downside as margin call bites

  • S&P 500 (^GSPC): 3,969.73, -4.81 (-0.12%)

  • Dow (^DJI): 33,058.66, -14.22 (-0.04%)

  • Nasdaq (^IXIC): 13,137.48, -1.24 (-0.01%)

  • Crude (CL=F): $60.47 per barrel, -$0.50 (-0.82%)

  • Gold (GC=F): $1,722.40 per barrel, -$9.90( -0.57%)

  • 10-year Treasury (^TNX): flat, yielding 1.658%

8 a.m. ET: Stocks dip ahead of quiet week, jobs data

Here’s where markets were trading ahead of the opening bell Monday morning:

  • S&P 500 futures (ES=F): 3,950.25, -14.50 (-0.37%)

  • Dow futures (YM=F): 32,812.00,-142.00 (-0.43%)

  • Nasdaq futures (NQ=F): 12,954.50, -12.25 (-0.09%)

  • Crude (CL=F): $61.40 per barrel, +$0.43 (+0.71%)

  • Gold (GC=F): $1,724.70 per ounce, -$7.60, (-0.44%)

10-year Treasury (^TNX): flat yielding 1.6600

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Ship stuck in Suez Canal “successfully refloated,” Egyptian officials say

Suez, Egypt — The colossal container ship that’s been wedged across the Suez Canal for almost a week was “successfully refloated” as of Monday morning, according the chairman of Egypt’s canal authority, but it was unclear when shipping through the critical waterway would resume.

A statement posted to the Egyptian government’s Suez Canal Authority (SCA), attributed to chairman and director Admiral Osama Rabie, said the MV Ever Given “has been successfully refloated. This was the result of successful push and tow maneuvers which led to the restoration of 80% of the vessel’s direction.”

The SCA said the stern of the hulking cargo ship was now positioned about 335 feet from the bank of the canal, whereas it had previously been stuck only about 15 feet from the bank.

High tide was expected at 11:30 a.m. local time (5:30 a.m. Eastern), which the SCA said would allow “for the full restoration of the vessel’s direction so it is positioned in the middle of the navigable waterway.”

“His Excellency, Admiral Rabie, would like to reassure the international navigation society as navigation shall be resumed immediately upon the complete restoration of the vessel’s direction and directing it to the Bitter Lakes waiting area for technical inspection,” the agency said, suggesting that other ships would be permitted to start transiting the canal as soon as the Ever Given was on the move again. 

CBS/Satellite photo credit: CNES/AIRBUS DS via REUTERS


The ship was wedged several miles north of the canal’s southern entrance from the Red Sea, and it wasn’t clear how long it would take crews to move it — under its own power or by tub boats — to the Bitter Lakes, a large holding area in the middle of the canal, which would allow other vessels to navigate around it. As soon as the Ever Given is underway, however, the SCA could let other ships start entering from the south, and declare the canal open.

The CEO of the parent company of Smit Salvage, which has been involved in efforts to free the Ever Given, cautioned earlier on Monday, however, that getting the ship fully back into the navigation channel might not be “a piece of cake.” The Reuters news agency quoted Boskalis CEO Peter Berdowski as telling Dutch Public Radio that a new tug would arrive and water would be sent under the ship’s bow to help free it, but if that doesn’t work, some containers on the Ever Given might still have to be removed to lighten it up.

Mohab Mamish, a presidential adviser for canal projects and former SCA chief, was also optimistic on Monday, however, telling CBS News that the ship was fully refloated and being examined to determine when it can be positioned to unclog the logjam it created.  

Global marine services provider Inchcape Shipping was the first to say the Ever Given had been freed. Inchcape said in a tweet that the Ever Given was “being secured at the moment. More information about next steps will follow once they are known.” The tweet included a diagram appearing to show the ship partially straightened.

Nearly a week ago, the skyscraper-sized Ever Given got stuck sideways in the crucial waterway, creating a massive traffic jam. The obstruction has been holding up $9 billion each day in global trade and straining supply chains already burdened by the coronavirus pandemic.

The MV Ever Given, a Panama-flagged cargo ship wedged across the Suez Canal and blocking traffic in the vital waterway, is seen on March 26, 2021.

Mohamed Elshahed/AP


As of Monday, 367 vessels, carrying everything from crude oil to cattle, were still waiting to pass through the canal, while dozens more are taking the alternate route around the Cape of Good Hope at Africa’s southern tip, adding around two weeks to journeys and threatening delivery delays.

The freeing of the vessel came after intensive efforts to push and pull the vessel with 10 tugboats when the full moon brought spring tide, Leth Agencies said, raising the canal’s water level and hopes for a breakthrough.

Overnight, several dredgers had toiled to vacuum up 27,000 cubic meters of sand and mud around the ship. Another powerful tugboat, Carlo Magno, was racing to the scene to join the efforts.

Although the vessel is vulnerable to damage in its current position, Shoei Kisen Kaisha Ltd., the company that owns the Ever Given, dismissed concerns on Monday, saying that the ship’s engine was functional and it could pursue its trip normally when freed.

Canal authorities have desperately tried to free the vessel by relying on tugs and dredgers alone, even as analysts warned that 1,300-feet-long ship, weighing some 220,000 tons, may be too heavy for such an operation. As a window for a breakthrough narrowed with high tide receding this week, fears had grown that authorities would be forced to lighten the vessel by removing some of the ship’s 20,000 containers — a complex operation, requiring specialized equipment not found in Egypt, that could take days or weeks.



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Oil Sinks as Suez Canal Ship Is Refloated, Market Weighs Demand

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Goldman Sachs Bets on These 3 Stocks; Sees Over 50% Upside Potential

What goes up must come down, as we all know. This fact of physics is the underlying worry of the stock market, that fuels our suspicions of bubbles. But investment firm Goldman Sachs doesn’t believe we should worry; the firm’s chief global equity strategist Peter Oppenheimer gives several reasons to expect that the market’s current upward trend is real. His key points include the equity risk premium, the real profits realized by the Big Tech giants, and the high savings rate of US households coming out of the COVID pandemic. Taking these points one at a time, Oppenheimer notes that in today’s regime of record-low interest rates, higher-risk stocks offer a premium; that is, their potential returns are far higher than safe bonds, and justify the added risk factor. On the second point, the giants of the tech industry represent a massive concentration of capital and wealth in just a few companies (Facebook, Apple, Amazon, Microsoft, and Google); but these companies built that concentration through strong fundamentals and real profit growth, rather than bubble inflation. And finally, on the point of savings, the decline in overall economic activity during the pandemic period has left US households with some $1.5 trillion in accumulated savings – which can be used for retail stock investing. Taking Oppenheimer’s outlook and turning it into concrete recommendations, the pros at Goldman Sachs are giving three stocks a thumbs up. Specifically, the firm’s analysts see over 50% upside potential in store for each. We’ve looked up these stock calls in the TipRanks database, to find out if Wall Street agrees with Goldman’s take. SpringWorks Therapeutics (SWTX) The first Goldman pick we’re looking at is a clinical-stage biotech firm in the oncology niche. SpringWorks uses a precision medicine approach in its development and commercialization of medical treatments for patient populations suffering from severe cancers and rare diseases. The company has an active pipeline, with programs investigating drug candidates for the treatment of desmoid tumors, plexiform neurofibromas, multiple myeloma, and metastatic solid tumors. The first two programs are the most highly advanced. Nirogacestat, the drug in testing against desmoid tumors, is undergoing Phase 3 study, and has received Orphan Drug Designation and Fast Track Designation from the FDA. The drug candidate operates through two therapeutic mechanisms, and has shown promise against multiple myeloma. Clinical studies of nirogacestat are underway for several additional indications. Mirdametinib, the company next most advanced drug candidate, is undergoing Phase 2b trial as a treatment for inoperable plexiform neurofibromas (NF1-PN). This is a rare cancer of the nervous system, affected the peripheral nerve sheaths and causing serious pain and disfigurement. NF1-PN can affect both children and adults, and mirdametinib is being studied as a treatment for both populations. As with Nirogacestat, the FDA has given Orphan Drug and Fast Track designations to this program. The trial is currently 70% enrolled and early data is described as ‘encouraging.’ A large and active research program will always draw attention from Wall Street’s biotech experts, and Goldman analyst Corinne Jenkins has noted several upcoming catalysts for SprinWorks: “1) DeFi topline data in desmoid tumors (2H21), 2) mirdametinib + lifirafenib combination data (2021), 3) BGB-3245 first-in-human data (2021), 4) DREAMM-5 update in MM (2H21), and 5) detailed ReNeu interim clinical results (2021).” Building from that, the analyst sees the company showing strong return potential. “[We] see upside to the commercial outlook for SWTX’s rare oncology programs driven by extended duration of therapy, but view the clinical results expected this year as well-understood and therefore unlikely to significantly drive stock performance. We frame the collection of upcoming catalysts in a scenario analysis below which supports our view of an attractive risk/reward for the stock over the balance of 2021,” Jenkins opined. It should come as no surprise, then, that Jenkins is a fan. Jenkins rates SWTX a Buy, and her $112 one-year price target implies an upside of ~66% from current levels. Goldman Sachs is hardly the only firm to be impressed with SpringWorks. The company’s stock has 4 Buy reviews, for a unanimous Strong Buy consensus rating. The shares are priced at $67.28, and their $110 average price target suggests 63.5% upside potential for the coming months. (See SWTX stock analysis on TipRanks) Targa Resources Corporation (TRGP) We’ll shift gears now, and take a look at one of the energy sector’s midstream companies. Midstreamers are the companies that transport the hydrocarbons from wellheads to markets; splitting production and transport allows companies to streamline their operations. Targa operates a network of midstream assets in North America, mainly in Oklahoma-New Mexico-Texas-Louisiana. Assets include natural gas and crude oil pipelines, with ops divided into two segments: gathering & processing and logistics & transportation. Targa has seen business increase over the past year. TRGP achieved 4Q20 adj EBITDA of $438 million, slightly above the $433 million Street median estimate. Full year adj EBITDA of $1.637 billion exceeded the $1.5bn-$1.625bn guide. Looking ahead, TRGP expects 2021 adj. EBITDA of $1.675bn-$1.775bn, or 5% YoY growth at the midpoint, which compares favorably to the Street median estimates of $1.698bn/$1.684bn. Targa’s shares have been rising. The stock is up an impressive 375% in the past 12 months, and Goldman Sachs analyst John Mackay sees more upside in the cards. Mackay gives TRGP a Buy rating, along with a $49 price target, suggesting a 51% one-year upside. (To watch Mackay’s track record, click here) “Our thesis for TRGP, briefly put, is that we see its strategic Permian and downstream NGL assets supporting higher-than-consensus EBITDA (GSe ~7% higher on average vs. Eikon for 2022+), which could allow larger — and sooner than expected — incremental returns of capital — all supported by a valuation that remains relatively cheap…. [As] the year progresses, we expect the focus to shift to the large upcoming capital allocation catalyst that (we anticipate) should come in early 2022 once TRGP completes its planned DevCo consolidations,” Mackay wrote. There is broad-based agreement on Wall Street that Targa is buying proposition. Of the 15 recent reviews, 13 are to Buy against just 2 Holds. The $38.27 average price target indicates a potential for 18% upside from the current trading price of $32.45. (See TRGP stock analysis on TipRanks) ADT, Inc. (ADT) For the last stock on Goldman’s list, we’ll switch gears again, this time to the home security sector. ADT provides a range of security services focused on alarm monitoring. Services include burglar and fire alarms, packages that include 24/7 monitoring, motion detectors, smoke and carbon monoxide detectors, and ‘smart home’ modifications. ADT’s services are available in the residential and commercial markets. The company’s revenue stream has remained stable through the past year, between $1.3 billion and $1.37 billion, and each quarter’s result was flat or slightly higher year-over-year. The full year’s revenues were 4% up from 2019. The company’s earnings net loss moderated through the year, and the Q4 result of a 14 cent net loss was the lowest of the year. Among the bulls is Goldman Sachs analyst George Tong who writes: “We believe ADT is well positioned to capitalize on new growth opportunities, including strong new home construction trends and rising smart home demand, as it offensively steps up its subscriber acquisition costs by $150-250mn this year. With these investments, management plans to deliver accelerated mid-teens gross recurring monthly revenue additions growth in 2021. We expect ADT to increase its penetration of the fast growing smart home category longer-term with this incremental spend…” The Goldman analyst sets a $13 price target on this stock to go along with his Buy rating, implying a 58% upside for the next 12 months. (To watch Tong’s track record, click here) Tong takes the bullish view of ADT, but there is a range of opinions on Wall Street. ADT has a Moderate Buy rating, based on a 3-1-1 split between Buy, Hold, and Sell ratings. The current share price is $8.21, and the average price target of $10.55 suggests ~28.5% upside from that level. (See ADT stock analysis on TipRanks) To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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Suez Canal ship Ever Given partially refloated after huge effort to unblock key global trade route

CAIRO, Egypt — The giant container ship that has blocked traffic in the Suez Canal, bringing a key global trade route to a standstill and capturing the world’s attention, was partially refloated early Monday.

The Ever Given “has successfully floated after the ship responded to the pulling and towing maneuvers,” Lt. Gen. Osama Rabie, chairman of the Suez Canal Authority, said in a statement.

The stern of the ship was now 102 meters (334 feet) from the shore, he added.

Both the canal authority and Inchcape, a separate maritime logistics company that manages shipping in the canal, said that the 1,400-foot long vessel’s position had now been straightened by 80 percent.

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The skyscraper-sized ship jammed diagonally across a southern section of the Suez Canal on Tuesday, leaving a total of 367 ships, including dozens of container ships and bulk carriers, unable to use the key trading route as of Monday morning.

Dredgers worked over the weekend to dislodge the stranded vessel, shifting some 27,000 metric tons of sand to a depth of 60 feet, the canal authority said Sunday.

A total of 14 tugboats were conducting pulling maneuvers from three directions to dislodge the ship, it added.

The maneuvers were due to resume again when the tide brings the water level back up.

Maritime traffic will resume once the ship is directed toward the Great Bitter Lake, a wide stretch of water halfway between north and south end of the canal, where it will undergo technical examination, the authority said.

Shoei Kisen Kaisha Ltd., the company that owns the vessel, told NBC News early Monday that the ship was not yet refloated and that the rescue operation had been put on pause because the water level, which has posed challenges throughout the process, had receded again.

The company had previously said it was considering removing containers if other refloating efforts failed.

The stranded Panama-flagged and Japanese-owned ship had halted all traffic across the canal. Experts feared it could take weeks to free it and clear the blockage of a route that accounts for about 12 percent of global trade.

The Suez Canal usually allows 50 cargo ships pass daily between the Mediterranean and the Red Sea, providing a vital trade corridor between Europe and Asia.

The closing threatened to disrupt oil and gas shipments to Europe from the Middle East. Already, Syria had begun rationing the distribution of fuel in the war-torn country because of concerns about delays of shipments arriving, The Associated Press reported.

Shipping rates for oil product tankers nearly doubled after the ship became stranded, Reuters reported, and the blockage has disrupted global supply chains, already strained by Covid-19 restrictions.

If the blockage dragged on, shippers may have been forced to reroute their cargoes around the Cape of Good Hope at the southern tip of Africa, adding about two weeks and extra fuel costs to journeys.

Charlene Gubash reported from Cairo, Arata Yamamoto reported from Tokyo, and Richie Duchon reported from Los Angeles.

Arata Yamamoto contributed.



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Cargo ship blocking Suez Canal has been refloated: Maritime firm Inchcape

A handout picture released by the Suez Canal Authority on March 24, 2021 shows a part of the Taiwan-owned MV Ever Given (Evergreen), a 400-metre- (1,300-foot-) long and 59-metre wide vessel, lodged sideways and impeding all traffic across the waterway of Egypt’s Suez Canal.

Suez Canal Authority | AFP | Getty Images

The giant container ship blocking the Suez Canal was refloated on Monday and is being secured, maritime services company Inchcape said in a Twitter post.

But it remains unclear what the condition of the stranded ship is and when the canal would be open to traffic, with Inchcape saying that “more information will follow once they are known.”

Efforts to free the mega vessel, known as the Ever Given, have lasted for nearly a week. The ship became stuck last Tuesday after running aground while entering the Suez canal from the Red Sea.

Ever Given is one of the largest container ships in the world. It is a 220,000-ton mega ship nearly a quarter-mile long with a 20,000 container capacity.

The ship completely blocked the canal that’s home to as much as 12% of the world’s seaborne trade, and caused a traffic jam with hundreds of ships waiting to enter the Suez.

Maritime data showed at least ten tankers and container ships changing course to avoid the logjam at the Suez Canal. Among them are at least two U.S. ships carrying natural gas for Cheniere and Shell/BG Group.

The crisis, now in its sixth day, has added to anxieties over the global supply chain which had already been impacted by the coronavirus pandemic. Each day of blockage disrupts more than $9 billion worth of goods, according to Lloyd’s List, which translates to about $400 million per hour.

Problem not solved yet

Experts told CNBC that problems caused by the Suez blockage will not immediately ease when the Ever Given is freed.

This will take quite awhile for the whole supply chain to get back to normal and that’s gonna have an impact on manufacturers, retailers right across the board.

Tim Huxley

director, Mandarin Shipping

Tim Huxley, director of Mandarin Shipping, said it will take “some time” for traffic that has built up to cross the narrow canal. And when those ships and tankers arrive at their destinations, ports will likely face congestion that will also take time to clear, he added.

“You normally have about 50 or so ships a day going through the canal, obviously at the moment it’s about 300 ships backed up … this is an enormous traffic jam, which is at both ends of the canal,” he told CNBC’s “Street Signs Asia” on Monday.

“This will take quite awhile for the whole supply chain to get back to normal and that’s gonna have an impact on manufacturers, retailers right across the board,” said Huxley.

— CNBC’s Matt Clinch, Natasha Turak and Lori Ann LaRocco contributed to this report.

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Ship Blocking Suez Canal Is Partially Freed

SUEZ, Egypt—Engineers partially freed a wedged ship blocking the Suez Canal on Monday and tugboats are now working on straightening its course in a move that could soon reopen the vital trade route and end days of global supply disruptions.

Osama Rabie, chairman of the Suez Canal Authority that operates the waterway, early Monday said tugs dislodged the bow of the 1,300-foot Ever Given, operated by Taiwan-based Evergreen Group, from the eastern bank of the canal.

“It is good news,” Mr. Rabie said. He added that tugboats would continue for another hour or so to ensure the vessel could begin moving again up the canal.

“We are not finished yet, but it has moved,” he said.

Write to Rory Jones at rory.jones@wsj.com

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