Wednesday, March 24, 2021

So, What's The Mess In The Suez Canal Going To Cost?

 A lot.

Those oil tankers and container ships parked at the southern end of the canal don't come cheap.

From Reuters via gCaptain:

Owner and Insurers of Ever Given Face Millions in Claims

The owner and insurers of one of the world’s largest container ships stuck in the Suez Canal face claims totalling millions of dollars even if the ship is refloated quickly, industry sources said on Wednesday.

The 400-meter, 224,000-tonne Ever Given ran aground on Tuesday morning after losing the ability to steer amid high winds and a dust storm, the Suez Canal Authority (SCA) said in a statement, threatening to disrupt global shipments for days.

GAC, a Dubai-based marine services company, said authorities were still working to free the ship mid-afternoon on Wednesday.

The ship’s owner, Japanese firm Shoei Kisen KK, and its insurers could face claims from the SCA for loss of revenue and from other ships whose passage has been disrupted, insurers and brokers said.

“All roads lead back to the vessel,” said David Smith, head of marine at insurance broker McGill and Partners.

Shoei Kisen could not be reached for comment.

Container ships of this size are likely insured for hull and machinery damage of $100-140 million, insurance sources say. The ship was insured in the Japanese market, two of the sources said.

The cost of the salvage operation is also borne by the hull and machinery insurer.

“It is potentially the world’s biggest ever container ship disaster without a ship going bang,” one shipping lawyer, who declined to be named, said.

Martijn Schuttevaer, spokesman for Dutch marine services company Boskalis, told Reuters its subsidiary Smit Salvage had been hired to help with the operation. A team of around 10 people is heading to Egypt.


In addition, owners of the cargo on board the ship and on other ships stuck in the Canal will likely claim from the ship’s liability insurer for losses to perishable goods or missed delivery deadlines, the sources said....


And earlier, Bloomberg via gCaptain:

Grounded Mega Ship in Suez Canal Paralyzes Trade for Second Day