Egypt holding ship hostage for a billion dollars

[ironhorsedriver]

Egypt refuses to release Ever Given until they pay up.
https://www.wsj.com/articles/suez-canal-has-reopened-but-the-ever-given-is-stuck-again-11617898144?reflink=desktopwebshare_permalink

[Fishrrman]

Betcha they wouldn't be doin' this if the ship belonged to China or Russia...

[catfish1957]

$1B ransom for $95M in lost revenues?  Who's speaking for them....  Jesse Jackson?

[thackney]

$1B ransom for $95M in lost revenues?  Who's speaking for them....  Jesse Jackson?

Mr. Rabie didn’t say Thursday what amount Egyptian authorities were seeking as compensation. But he said last week that Egypt would demand $1 billion for the cost of the operation to free the ship, the loss of transit fees—an important source of foreign currency for Egypt—and other costs from the blocking of the canal, which caused a traffic jam of more than 400 ships on either side of the channel.

[thackney]

The blockage of the Suez Canal had led to losses in global trade of about $400 million per hour, according to the London-based Lloyd’s List.

https://english.ahram.org.eg/NewsContent/50/1201/408681/AlAhram-Weekly/Egypt/Compensation-from-the-Ever-Given.aspx

[thackney]

https://www.nbcnews.com/news/world/dislodged-suez-canal-cargo-ship-ever-given-held-amid-916-n1264017
April 14, 2021


A mammoth cargo ship that blocked the Suez Canal last month is being held in the waterway as authorities pursue a $916 million compensation claim against its owner, according to the vessel’s insurer.

The UK Club, an insurer for the Ever Given, said in a statement Tuesday that the ship's Japanese owners received a claim from the Suez Canal Authority (SCA), which runs the canal, on April 7. The claim includes $300 million for "loss of reputation."...

[Sled Dog]

That kinda begs the question of why the ship got stuck.   How well was Pyramid Land maintaining the asset they inherited from the British?

Oh, and how much did they really lose in transit fees, since almost all the traffic merely waited patiently until the Drano Team cleared the clog?

[berdie]

I've been curious why the ship got stuck, myself.

[Elderberry]

I've been curious why the ship got stuck, myself.

https://www.usatoday.com/story/news/world/2021/03/30/suez-canal-freed-what-caused-cargo-ship-ever-givens-grounding/7058146002/

While Egypt's Suez Canal Authority works to clear the shipping backlog, investigators comb the Ever Given for clues to what caused the grounding. The Panamanian-flagged vessel weighs 220,000 tons, is nearly a quarter-mile long and carries 20,000 containers. The ship spun around and became stuck in the sand in a windstorm March 23.

Egyptian government officials, insurers and shippers await reports on what caused the grounding. A determination of fault will probably lead to years of litigation to recoup the costs of repairing the ship, fixing the canal and reimbursing shippers for the disruptions, said Capt. John Konrad, founder and CEO of the shipping news website gCaptain.com.

The ship is owned by a Japanese firm, operated by a Taiwanese shipper and flagged in Panama.

“This ship is a multinational conglomeration,” Konrad said.

The ship’s owner, Shoei Kisen Kaisha, said Tuesday that it would aid the investigation but declined to discuss possible causes of the grounding, citing the probe.

Shoei Kisen Kaisha is covered with $3 billion in liability insurance through 13 Protection and Indemnity Clubs. Those clubs are not-for-profit mutual insurers used by the majority of global shipping firms. Global legal firm Clyde said the Ever Given’s owner probably would pay Egypt’s canal authority for the assistance rendered to the vessel. The authority could fine the Ever Given.

[berdie]

Thanks...that must have been a major wind!

[Elderberry]

Thanks...that must have been a major wind!

Sandstorm, winds blamed for container ship fiasco in Suez Canal

https://www.freightwaves.com/news/sandstorm-winds-blamed-for-container-ship-fiasco-in-suez-canal

Evergreen Marine, the Taiwanese transportation company that built and operates the Ever Given, said the ship was “suspected of being hit by a sudden strong wind, causing the hull to deviate … and accidentally hit the bottom and run aground.”

However, it was likely blowing sand caused by the winds that caused the accident. The Suez Canal Authority said in a statement Wednesday that 46-mph (40-knot) winds and a sandstorm caused low visibility and poor navigation. It happened when the ship was en route from Yantian, China, to the Port of Rotterdam in the Netherlands.

46mph don't seem That bad. But with driven sand, there must have been no visibility. I wonder if radar would even work in a sandstorm.

[Smokin Joe]

Sandstorm, winds blamed for container ship fiasco in Suez Canal

https://www.freightwaves.com/news/sandstorm-winds-blamed-for-container-ship-fiasco-in-suez-canal
46mph don't seem That bad. But with driven sand, there must have been no visibility. I wonder if radar would even work in a sandstorm.

Think of the sail area of the hull and stacked cargo, and there is some impressive force involved.

[Elderberry]

Think of the sail area of the hull and stacked cargo, and there is some impressive force involved.

You're right and they were in a totally confined area. I've been out in gale force winds, but we had the whole Gulf of Mexico to maneuver in.

[thackney]

Sandstorm, winds blamed for container ship fiasco in Suez Canal

https://www.freightwaves.com/news/sandstorm-winds-blamed-for-container-ship-fiasco-in-suez-canal

Sound like the fault may be with the Suez Canal Operators in allowing continued passage in these conditions.  They may not enjoy the lawsuits coming their way.

[thackney]

I found another description adding to the breakdown of the numbers in the claim:

https://gcaptain.com/suez-canal-authority-holding-ever-given-amid-compensation-claim/

...UK Club, the protection & indemnity (P&I) insurer for the Ever Given, said the canal’s claim included $300 million for a “salvage bonus” and $300 million for “loss of reputation.”

“Despite the magnitude of the claim, which was largely unsupported, the owners and their insurers have been negotiating in good faith with the SCA,” UK Club said in a statement....

[dfwgator]

[Idiot]

Sound like the fault may be with the Suez Canal Operators in allowing continued passage in these conditions.  They may not enjoy the lawsuits coming their way.

I'd guess that any of the larger ships from now on will be required to have 2-4 tugs with them as they go through this part of the canal.

[Sled Dog]

I found another description adding to the breakdown of the numbers in the claim:

https://gcaptain.com/suez-canal-authority-holding-ever-given-amid-compensation-claim/

...UK Club, the protection & indemnity (P&I) insurer for the Ever Given, said the canal’s claim included $300 million for a “salvage bonus” and $300 million for “loss of reputation.”

“Despite the magnitude of the claim, which was largely unsupported, the owners and their insurers have been negotiating in good faith with the SCA,” UK Club said in a statement....

The Suez canal has a "reputation"?   It's the only ditch between the Mediterranean and the Indian Ocean.   What choice to shippers have?