Grounded ‘Mega Ship’ Blocking Suez Canal in Both Directions

[Montanan]

Suez Canal blockage: Investigators analyzing Ever Given's black box that could hold key to costly grounding

https://www.msn.com/en-us/news/world...?ocid=msedgntp

Osama Rabie, chairman of the Suez Canal Authority, said an analysis of the ship's data is underway and should provide crucial details surrounding the grounding. An initial report on the costly accident could be released this week,

Rabie also repeated his claim that the grounding cost his agency and Egypt $1 billion. That does not include losses faced by owners of more than 400 ships delayed by the blockage or the losses to owners of cargo on those ships.

. . .

Lawrence Brennan, who teaches maritime law at Fordham Law School, says black boxes should have data involving the ship’s engines, machinery and navigation. Other recorders probably could provide conversations from the bridge, he said.

"There likely are going to be multiple cases in various national courts which have different rules that sides expect will favor their interests,"
But the ships that sat in line for days awaiting the canal's reopening should not hold out much hope of compensation, he added.

"Generally, delay alone absent physical damages is not recoverable," he said.

[Montanan]

Reinsurers are set to foot most of the bill for the grounding of the ship that halted traffic in the Suez Canal, industry sources said, with payouts expected to run into hundreds of millions of dollars.

. . .

Ships typically have protection & indemnity (P&I) insurance, which covers third party liability claims including environmental damage and injury. Separate hull and machinery (H&M) policies cover vessels against physical damage.

Alan Mackinnon, chief claims officer with UK Club, the Ever Given's P&I insurer, said it expected a claim against the ship’s owner from the canal authorities for possible damage to the canal and for loss of revenues, and separately claims for compensation from some of the owners of the delayed ships. "I expect we will get a claim from the Egyptian authorities quite soon and the claims from the other shipowners will trickle in over the coming months,"

Suez Canal Authority chairman Osama Rabie said last month that losses and damages from the Ever Given blockage could reach around $1 billion, but that the actual amount would be calculated after the investigations, though it was unclear when this would be completed.

The UK Club will cover the first $10 million of P&I losses. Beyond that, the wider pool of P&I insurers will cover up to $100 million, at which point re-insurers such as Lloyd’s of London step in for up to $2.1 billion of claims. P&I insurers would contribute for part of a further $1 billion of cover.
When asked if claims could reach the upper levels of cover at $2.1 to $3.1 billion, UK Club's Mackinnon said “we are confident we are not in that territory at all.” "This is not an existential moment for the P&I sector. It may be a large claim but we are structured to deal with large claims."

https://www.msn.com/en-us/news/world...?ocid=msedgntp

[Montanan]

Egypt will release the giant container ship that had blocked the Suez Canal for nearly a week once a deal is reached on compensation for related losses.

The Ever Given blocked the canal for six days, roiling global markets and costing the Suez Canal Authority $15 million a day in lost revenue, according to its calculation. Egypt wants compensation for the losses, as well as the cost of freeing the vessel. The ship and its cargo are currently in the Great Bitter Lake, roughly halfway along the canal.

[Dsanduril]

Fascinating that just barely after re-opening a tanker lost propulsion while transiting the canal. Could have ended up as the Ever Given 2.0.

Suez Canal Traffic Briefly Stopped as Oil Tanker Loses Power

A related story in Arab News quotes the SCA chairman as saying:

The authority is also looking into procuring the kinds of cranes that could potentially offload cargo at heights of up to 250 metres (820 ft) for these kinds of emergencies, Rabie said.

[That's one tall ship, I hope something was lost in news writing]

[CassidyNZ]

Originally Posted by Montanan

The Ever Given blocked the canal for six days, roiling global markets and costing the Suez Canal Authority $15 million a day in lost revenue, according to its calculation. Egypt wants compensation for the losses, as well as the cost of freeing the vessel. The ship and its cargo are currently in the Great Bitter Lake, roughly halfway along the canal.

Yes, I suppose that’s understandable.

Except that in the days/weeks following the re-opening of the canal the SCA processed nearly all of the ships through the canal that they would have if there had been no blockage. The last number I recall was that there were something like 400 ships backed up and a week later the backlog was declared as “cleared”.

So really, the only revenue they lost was a handful of ships that diverted around Cape of Good Hope. The rest of the revenue was recovered by processing the “backlog”.

But Egypt will want to recover $15m/day nevertheless. Institutionalised baksheesh?

[Belezar]

Time is money!

[Montanan]

Originally Posted by Belezar

Time is money!

Ah, but is money, time?

[Bill Seal]

Interesting story (true), back in 1961, the Coast Guard Cutter Eastwind came back from it's trip to Antarctica the long way, in order to get an RTW. They were planning to stop in Rhodes Greece in order to meet with the VOA 150 kw radio relay ship USCGC Courier. Unfortunately, Nasser demanded "cash on the barrelhead" for transiting the canal, so they had to give him all the crew's payroll money, and had go on to Athens or Naples to get more cash, and didn't make it back to Rhodes.

[CassidyNZ]

Originally Posted by Belezar

Time is money!

I guess by that you mean that 400 ships were delayed and money was lost? Yes, true, but that money was lost by everybody but the SCA. All the shipping companies, the shippers, the retailers and so on. Should they not all be standing in line to sue the s**t out of the SCA for their losses? After all, the SCA promise a quick passage from Asia to Europe and never provided. Your fault, my fault, nobody’s fault, it’s still the SCA that carries the can for non-performance.

And yet they’re the ones who want compensation?

At least that’s my logic as skewed as it may be.

[Belezar]

If they can make it all back up quickly, your probably right, all else being the same, unless they have some banking costs or penalties. And the SCA likely fully covers themselves well. Their operating costs though likely didn’t decrease as they had to stay fully staffed in case it moved.

But for ships, they will never get that revenue back.

[Pelagic]

Originally Posted by CassidyNZ

I guess by that you mean that 400 ships were delayed and money was lost? Yes, true, but that money was lost by everybody but the SCA. All the shipping companies, the shippers, the retailers and so on. Should they not all be standing in line to sue the s**t out of the SCA for their losses? After all, the SCA promise a quick passage from Asia to Europe and never provided. Your fault, my fault, nobody’s fault, it’s still the SCA that carries the can for non-performance.

And yet they’re the ones who want compensation?

At least that’s my logic as skewed as it may be.

SCA provides a service in transport, but you cannot sue them.if they fail to provide that service,just as you could never sue an airline company for a delayed or cancelled Flight.

SCA can try to sue operators of Ever Given for blocking the runway, but highly unlikely to be successful unless Gross Negligence is found.

After all they gave them permision to proceed and put their own representative on board.

Everyone except the Salvors will loose out on thier annual bottom line, but this was a good teaching moment to SCA and they got away lucky

[Mickeyrouse]

Evergreen is still anchored in the Great Bitter Lake, almost two weeks after being re-floated. Hostage, no doubt. I feel sorry for the crew.

[GordMay]

"2 experts explain why the company whose ship blocked the Suez Canal has seen its stock surge 28% since the incident started"
Evergreen Marine Corporation has rallied 28% since its “Ever Given” ship got stuck in the Suez Canal.
More ➥ https://markets.businessinsider.com/...1-4-1030295252

[NaClyDog]

https://www.washingtonpost.com/world...-seized-egypt/


And there you have it... it has been seized by the Suez Canal Authority.

[JPA Cate]

And the SCA are bargaining about the necessary compensation. Seems to me this was predicted up thread, quite a long way back, and by more than one poster....even before the Everstuck got unstuck.

Ann