Page 34 - Insurance Times July 2021

dozen tug boats and multiple dredgers. The dredging
efforts had removed tones of sand and mud, which
loosened the ship's bow, and after that the ship's stern
was cleared from the sand bank.

Y What did the Suez Canal Authority do after
the blockage of the canal was clear?
While the 1300-foot-long container ship has been freed
from its grounding in the Suez Canal, it still remains in
the canal. That is because Egyptian authorities say they
want the ship's owners to pay a king's ransom to
compensate for the week that the canal was shut down.
The Suez Canal Authority (SCA) has arrested the Ever
Given ship and is demanding USD 916 million in chain already under pressure from the pandemic and a
damages. surge in buying. Virus-related restrictions have already
trapped crews on merchant ships.
The money relates to lost income from transit fees,
damage to the canal during the dredging and salvage Expenses and losses leading to potential insurance claims
efforts, and equipment and labour costs. O Salvaging expenses

UK P&I Club said last week the SCA's claim included USD O Hull damages and costs of inspection
300 million for a "salvage bonus" and USD 300 million O Losses of perishable items
for "loss of reputation."
O Cargo delivery after date of expiry
Y Why was Ever Given arrested? O Losses due to missed delivery deadlines
The containership was arrested on April 13, 2021 as O Business compensation losses for mis-delivered or
the Suez Canal Authority (SCA) and the ship owners undelivered goods
failed to reach an agreement on the compensation
O Canal damage
claim for the ship's grounding in the canal.
O Bunkering & expenses of provisions due to the
The SCA is seeking USD 916 million in damages for the
arrest etc.
costs incurred by the ship's blockage of the waterway.
O Crew expenses for the period of arrest and vessel
Y How has Ever Given responded to the arrest? maintenance expenses etc.
Japanese shipping company Shoei Kisen Kaisha has filed O Higher container leasing expenses due to usage for
an appeal before the Ismalia court in Egypt against the a longer than the agreed duration
arrest of Ever Given and its cargo on 22nd April, 2021. O Possible forwarding costs of cargo by another vessel
According to the UK P&I Club, including attendant unloading, storage and loading
expenses
"The appeal against the arrest was made on several
grounds, including the validity of the arrest obtained in O Re-routing costs for the 6,000 mile longer journey
respect of the cargo and the lack of supporting evidence around the Cape of Good Hope
for the SCA's very significant claim,". The UK P&I Club O Additional fuel bills of USD 300,000 per supertanker
also said that the appeal was made as it 'has not been that is re-routed
possible to resolve this matter without the continued
O Fluctuating crude oil prices due to the crisis-caused
involvement of the Egyptian courts.'
supply issues
Meanwhile, the talks between the two sides on the
compensation claim are continuing. Y What about third-party claims?
Experts have opined that there are many scenarios for
Y What is the impact of the Suez Canal crisis on third party liabilities that might arise from an incident
the global supply-chain? such as this, for example, any damage caused to
The Suez situation could compound issues for a supply infrastructure or claims for obstruction.

34 The Insurance Times, July 2021