Tuesday, July 6, 2021

Finally the Ship Which Blocked Suez and Sent Ripples Round the World is Set to Sail Off

Agreement being Inked Which Will See Her Release This Week
Shipping News Feature

EGYPT – After being held in a lake between stretches of the Suez canal for over three months waiting for the long Court wrangles over compensation to be settled, it appears the Evergreen owned container ship Ever Given may finally be allowed to continue her voyage.

An incident such as this, with the 400 metre long ship getting stuck across the waterway and blocking all transits, incurs eye watering costs. We had the imposition of General Average, with uninsured shippers asked to stump up thousands as their share of the potential expenses, plus all the peripherals of loss of profits etc. as ships by the dozen were re-routed or delayed.

The Court hearing was adjourned on 4th July after both parties said a deal was close. On one side you had London insurance specialists Stann, representing Japanese operator Shoei Kisen and its insurers, on the other the Suez Canal Authority (SCA) which had originally claimed $960 million compensation.

This figure has apparently been whittled down to $550 million with a 75 tonne capable tug boat thrown in as a sweetener, and the ship may be released tomorrow (July 7) with a celebratory send off as the SCA signs the release alongside the vessel’s representatives.

And the SCA can afford to lay on the champagne and cucumber sandwiches at the planned reception at its headquarters in Ismailia, having reportedly received revenues of $3 billion in the first six months of 2021, up 8.8% on 2020, and this despite the blockage of the canal for six days in March.

Photo: Tugboats swarm around the Ever Given as she is refloated on 29 March 2021. Image courtesy of the SCA.