Page 32 - Insurance Times July 2021

THE SUEZ

CANAL

BLOCKAGE

AND ITS

IMPACT

A mongst the global headlines in the month of This incident has starkly highlighted the omnipresent risks

of international shipping. This crisis is of interest to the
March of this year, references to the blockage
of one of the busiest shipping lanes of the world
insurance fraternity and layman alike as the intricacies of
by the container ship Ever Given featured
prominently. News stories on the piling up of cargo ships insurance have come to the forefront in the public domain.
Marine concepts which were part of insurance parlance
causing an unprecedented shipping traffic-jam, on multiple such as general average, salvage expenses and P & I Clubs
attempted salvage operations, the woes of the cargo have been mentioned widely in the media. It would be of
owners, the subsequent arrest of the vessel and its seamen use to all stake-holders and the general public to
and the huge compensation sought for by Egypt's Suez Canal understand these concepts in greater details in order to
Authority were all widely covered news items. protect their own interests and for enhancing their general
awareness.
The blockage of the Suez Canal for six days and seven hours
caused vessels to be backed up in the Mediterranean to the
north and the Red Sea to the south. It is estimated that the
costs to global trade was about USD 400 million per hour
based on the approximate value of goods that are moved
through the Suez every day, according to shipping data and
news company Lloyd's List.

About the author

Nandita Banerjee
Retired Manager
National Insurance Co. Ltd.

32 The Insurance Times, July 2021