International Suez Canal Crisis 2021: Ever Given Report Highlights Suez Canal Pilots’ Role in Grounding

[Arkain2K]

 

[MicroBrew]

So if the Egyptian pilot is to be blamed, Egypt still gets compensation from the ship owners or leasee.

Sure wish Israel would build a competing canal.

 

[Arkain2K]

Update: Egypt seized the ship.

 

[Arkain2K]

$300,000,000 for "salvage bonus" to Egypt, even though the Dutch and Japanese savage companies that dredged the canals to free the ship were hired by the ship owner? Or may be that's the bill for that lone excavator on the shore?

$300,000,000 for "lost of reputation"? To whom?

Wtf is this, a mobster shakedown?

If - and I stress IF - the ship is responsible and not the pilots, the only thing they owes Egypt are the lost of canal transit revenue over those 6 days, plus the tug boats.

----

Egypt impounds Ever Given ship over $900 million Suez Canal compensation bill
By Mostafa Salem, Mai Nishiyama and Pamela Boykoff | April 14, 2021​

Egyptian authorities have seized a massive cargo ship which blocked the Suez Canal for almost a week last month, amid a dispute over financial damages.

An Egyptian court ordered the vessel's Japanese owner, Shoei Kisen Kaisha, to pay $900 million in compensation as a result of losses inflicted when the Panamanian-flagged Ever Given prevented marine traffic from transiting through the vital global trade waterway, the state-run Al Ahram news outlet said on Tuesday.

The hefty bill also includes maintenance fees and the costs of the rescue operation, Al Ahram reported.

An international salvage operation worked around the clock to dislodge the ship from the banks of the canal, intensifying in both urgency and global attention with each passing day, as ships from around the world, carrying vital fuel and cargo, were prevented from entering the canal.

The Ever Given was successfully re-floated on March 29 and moved to the nearby Great Bitter Lake to be inspected for seaworthiness and to allow repairs to be carried out. A crew of 25 Indian nationals remain on board the vessel.

Shoei Kisen Kaisha said insurance companies and lawyers were working on the compensation claim, and refused to comment further.

The ship's technical managers, Bernhard Schulte Shipmanagement (BSM), said Wednesday that the ship had been declared safe for onward passage to Port Said on the Mediterranean Sea, but was being detained because of the dispute between the Suez Canal Authority (SCA) and the vessel's owners.

"The SCA's decision to arrest the vessel is extremely disappointing," BSM CEO Ian Beveridge said in a statement. "From the outset, BSM and the crew on board have cooperated fully with all authorities, including the SCA and their respective investigations into the grounding... BSM's primary goal is a swift resolution to this matter that will allow the vessel and crew to depart the Suez Canal," he added.

UK Club, one of the Ever Given's insurers, said Tuesday that it had responded to a claim from the SCA for $916 million, and questioned its basis.

"Despite the magnitude of the claim which was largely unsupported, the owners and their insurers have been negotiating in good faith with the SCA. On 12 April, a carefully considered and generous offer was made to the SCA to settle their claim," the statement said.

UK Club says it is the insurer of the Ever Given for certain third-party liabilities including obstruction claims or infrastructure issues, but is not the insurer for the vessel itself or the cargo.

Its statement went on to explain why UK Club believes the magnitude of the claim is not valid.

"The SCA has not provided a detailed justification for this extraordinarily large claim, which includes a $300 million claim for a 'salvage bonus' and a $300 million claim for 'loss of reputation.' The grounding resulted in no pollution and no reported injuries. The vessel was re-floated after six days and the Suez Canal promptly resumed their commercial operations. The claim presented by the SCA also does not include the professional salvor's claim for their salvage services, which owners and their hull underwriters expect to receive separately," the UK Club statement said.

The ship's cargo has been seized until the dispute is resolved, according to the Suez Canal Authority.

More than 400 ships were blocked from passing through the crucial shipping lane when the Ever Given ran aground on March 23. The circumstances that led to the situation are still being probed separately by Egyptian authorities.

https://amp.cnn.com/cnn/2021/04/13/business/ever-given-seized-compensation-bill-intl/index.html

 

[3825 968]

Egypt with the shakedown. I can see the ship just up and vanishing one night with a 20 taped to a rock.

 

[Arkain2K]

Egypt court upholds seizure of ship that blocked Suez Canal
SAMY MAGDY | May 4, 2021

CAIRO (AP) — An Egyptian court Tuesday rejected an appeal by the owner of a massive container ship of the court-ordered seizure of the vessel over a financial dispute.

Egyptian authorities have impounded the hulking Ever Given, which blocked the Suez Canal for nearly a week in March, halting billions of dollars in maritime commerce.

The Suez Canal Authority said the vessel would not be allowed to leave the country until a compensation amount is settled on with the vessel’s Japanese owner, Shoei Kisen Kaisha Ltd.

A court in the Suez Canal city of Ismailia ordered the seizure of the vessel earlier this month. The Ever Given’s owner filed an appeal on April 22 in hopes of overturning the decision.

The Economic Court of Ismailia on Tuesday upheld the seizure decision. There was no immediate comment from the vessel’s owner.

The Suez Canal Authority has demanded $916 million in compensation, according to the UK Club, an insurer of the Ever Given. That amount takes into account the salvage operation, costs of stalled canal traffic and lost transit fees for the week the Ever Given blocked the canal.

Negotiations between the Suez Canal Authority and the shipowner were still ongoing to settle the compensation claim, Shoei Kisen Kaisha Ltd. said last week. The company said it has notified a number of the owners of the approximately 18,000 containers on the ship to assume part of the damages demand. It refused to disclose further details of the negotiations, including the amount covered by insurance and how much it is asking freight owners to share.

The Ever Given was on its way to the Dutch port of Rotterdam on March 23 when it slammed into the 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.

A massive salvage effort by a flotilla of tugboats helped by the tides freed the skyscraper-sized, Panama-flagged Ever Given six days later, ending the crisis, and allowing hundreds of waiting ships to pass through the canal.

The blockage of the canal forced some ships to take the long alternate route around the Cape of Good Hope at Africa’s southern tip, requiring additional fuel and other costs. Hundreds of other ships waited in place for the blockage to end.

The shutdown, which raised worries of supply shortages and rising costs for consumers, added strain on the shipping industry, already under pressure from the coronavirus pandemic.

https://news.yahoo.com/news/egypt-court-upholds-seizure-ship-155216663.html

 

[Arkain2K]

The Suez Canal will be widened by 131 feet to avoid a repeat of the Ever Given chaos, authorities say
By Sophia Ankel | May 15, 2021

Egyptian authorities said this week they plan on widening and deepening parts of the Suez Canal to avoid a repeat of the Ever Given blunder in March, according to Bloomberg.

In a televised address on Tuesday, the head of the Suez Canal Authority (SCA), Osama Rabie, said an 18.6 mile stretch of the waterway would be widened by about 131 feet (40 meters) and deepened by 32 feet (10 meters) to improve the movement of ships in the area.

The expansion will take around two years, Rabie said.

Egyptian President Abdel-Fattah El-Sisi, who also spoke at the event, stressed he doesn't want to mobilize "huge" public funding for the project, according to Bloomberg.

The Suez Canal, an artificial sea-level waterway, is one of the world's most heavily used shipping lanes, facilitating about 12% of all global trade.

The Japanese-owned Ever Given container ship made headlines in March after it ran aground in the single-lane stretch during a sandstorm.

It blocked the crucial waterway for six days, forcing some vessels to reroute, while hundreds had to wait for the Ever Given to be freed.

A few days after the Ever Given was dislodged, the SCA impounded the ship and its cargo and lodged a compensation claim of $916 million.

The canal authority since reduced the claims to $600 million. However, the insurer of the vessel said this amount is still too high.

The massive container ship had spent 48 days idle as of Saturday. It is impounded in the Great Bitter Lake, a body of water roughly 30 miles from where it first got stuck.

https://www.businessinsider.com/sue...d-avoid-repeat-ever-given-blockage-2021-5?amp

 

[Gandhi]

Did I read they want the freight owners to help out? Like I put cargo on a ship and now I am responsible if it crashes. That’s not how it works lol.

 

[SpartanKhmy]

That explains the PS5 shortage...

 

[FIGHTING TALK]

call me a conspiracy isnt, but erm...
It’s quite obviously that jihadis purposely blocked the suez using the largest ship they could get their hands on.
The captain of the ship would have to have intentionally manouvered the ship to have enabled this to happen, it was categorically no accident.

 

[HockeyBjj]

call me a conspiracy isnt, but erm...
It’s quite obviously that jihadis purposely blocked the suez using the largest ship they could get their hands on.
The captain of the ship would have to have intentionally manouvered the ship to have enabled this to happen, it was categorically no accident.

Congratulations for the absolute dumbest take here

 

[Supereem]

Did I read they want the freight owners to help out? Like I put cargo on a ship and now I am responsible if it crashes. That’s not how it works lol.

Actually that is how it works. It’s called general average.

 

[BIKES!]

Did I read they want the freight owners to help out? Like I put cargo on a ship and now I am responsible if it crashes. That’s not how it works lol.

It’s the stupidest fucking shit ever. The companies deal with containerization to the extent of the individual container. They have no say or influence on the actual ship the containers end up on.

Additionally, the ripple effect of delays caused to nearly every sector are unquantifiable.

 

[FIGHTING TALK]

Congratulations for the absolute dumbest take here

And your proof that it was an accident?

 

[HockeyBjj]

And your proof that it was an accident?

You're the one with the bold claim. The burden of proof is on you. I'd like to see your proof.

To toss your original bullshit out the window, it's not even the captain that pilots the ships down the canal. Dedicated Suez Canal Navigators do that

So fantastic theory that the captain did this on purpose when they're not even the ones steering or maneuvering at the time of the accident.

 

[Gandhi]

Actually that is how it works. It’s called general average.

Interesting. If I read it right, you are responsible to cover others losses (ie cargo, ship, other expenses) taken to save your cargo based and UP to the value of your cargo. You would never pay more than the value of the cargo.

I guess that makes sense, risk of putting the cargo on a vessel. I could see the tugboat operation falling under that. But the crazy claim made by the government for blocked traffic, not so sure and it might exceed the cargo value.

 

[Gandhi]

It’s the stupidest fucking shit ever. The companies deal with containerization to the extent of the individual container. They have no say or influence on the actual ship the containers end up on.

Additionally, the ripple effect of delays caused to nearly every sector are unquantifiable.

It makes a bit more sense to me now.

I want to avoid sinking so I incur some crazy cost to save your cargo, this ensures I have an incentive and means to get paid to do that.

It almost like a conditional lien.

 

[MicroBrew]

Interesting. If I read it right, you are responsible to cover others losses (ie cargo, ship, other expenses) taken to save your cargo based and UP to the value of your cargo. You would never pay more than the value of the cargo.

I guess that makes sense, risk of putting the cargo on a vessel. I could see the tugboat operation falling under that. But the crazy claim made by the government for blocked traffic, not so sure and it might exceed the cargo value.

Been watching this guy's videos since this whole incident took place. He is quite knowledgeable and his delivery is concise and to the point. He has been working on cargo ships since the mid/late 90s. He is a Chief Engineer (ship's chief engineer) .

He explains who is liable for what . Short video

 

[Gandhi]

Been watching this guy's videos since this whole incident took place. He is quite knowledgeable and his delivery is concise and to the point. He has been working on cargo ships since the mid/late 90s. He is a Chief Engineer (ship's chief engineer) .

He explains who is liable for what . Short video

Thanks!!! yeah that makes sense with how I though it would work

 

[Hadron90]

Who even wants the ship back? Who would be caught piloting it? Everywhere you go, people would be pointing and laughing at you, if they aren't spitting and cursing at you.