Ever Given ship forbidden to leave the Suez Canal until its owners pay up to $1 billion in compensation for the chaos it caused

Ever given
The “Ever Given” container ship operated by the Evergreen Marine Corporation, sails through the Suez Canal.

  • The Ever Given can’t leave the Suez Canal until compensations are paid, officials said Thursday.
  • It is still unclear how much has to be paid, although it could be up to $1 billion.
  • The owner of the Ever Given said it hadn’t officially heard from Egyptian authorities yet.
  • See more stories on Insider’s business page.

While the giant Even Given container ship might have been freed from the banks of the Suez Canal, it still finds itself stuck, embroiled in a row of who should pay for dislodging it from the waterway.

Egyptian authorities said that they wouldn’t release the massive ship, which was stuck in the Suez Canal for almost a week until its owners agree to pay up to $1 billion in compensation.

“The vessel will remain here until investigations are complete and compensation is paid,” Lt. Gen. Osama Rabie, who leads the Suez Canal Authority, told a local news station on Thursday, according to the Wall Street Journal.

“We hope for a speedy agreement,” he said, adding that the “minute they agree to compensation, the vessel will be allowed to move.”

Read more: 4 ways small business owners can benefit from supply chain delays happening right now

Rabie said that Egyptian authorities would demand $1 billion to cover the costs of freeing the vessel.

The figure will cover the expense of the equipment and machinery used to clear the way, damage to the canal itself by the dredging, and compensate around 800 people who worked to release the 200,000-ton ship, Rabei said.

It will also refund the costs from the blocking of the canal, which ended up causing an epic traffic jam of more than 400 ships on either side of the channel.

Rabie did not say how exactly he arrived at that figure.

According to London-based financial firm Revenitiv, the Egyptian state lost transit fees worth $95 million because of the blockage.

suez canal plane picture
An aerial view of the Suez Canal in Egypt, taken from a commercial flight on March 27, 2021.

It is also still unclear who will pay for Egypt’s demand for compensation. Shoei Kisen Kaisha Ltd., the Japanese owner of the Ever Given, told the Wall Street Journal that it hadn’t officially heard from the Egyptian authorities.

Eric Hsieh, the president of Evergreen Marine Corp, the charterer of Ever Given, said that the company is “free of responsibility from cargo delays” because “it will be covered by insurance,” Bloomberg reported.

The 1,300-foot Ever Given made headlines on March 23 when an unexpected wind storm caused it to steer off course and get lodged in the sandbanks of the Suez Canal, disrupting global trade. It was freed six days later.

Egypt has since opened a formal investigation into how the vessel got stuck in the first place.

The ship, its cargo, and the 25-person Indian crew of sailors will remain at anchor in Egypt’s Great Bitter Lake until the investigation is over. Earlier this month, authorities told Insider that the crew of the ship is safe and will continue getting paid.

Rabie said that he would prefer to settle the matter of compensation outside of court, although he didn’t rule out a lawsuit.

“We could agree on a certain compensation, or it goes to court,” he said, according to CNBC. “If they decide to go to court, then the ship should be held.”

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Ever Given, the giant ship blocking the Suez Canal, had another accident in 2019 when it crashed into a small ferry in Germany

Suez canal ever given
The Ever Given, trapped in the Suez Canal, Egypt, as of Thursday March 25 2021.

  • This is not the first accident for the massive cargo ship blocking the Suez Canal.
  • Ever Given collided with a ferry in 2019, damaging the smaller boat and injuring the skipper.
  • An investigation at the time blamed winds, a factor that has also been named in the recent blockage.
  • See more stories on Insider’s business page.

The Ever Given made waves last week when it became wedged in Egypt’s Suez Canal, blocking one of the world’s most important trade routes and costing $400 million an hour in delayed goods.

But apparently, it wasn’t the first accident for the big boat.

In 2019, the vessel collided with a small ferry in Germany, the Wall Street Journal reported. The small boat, which did not have any passengers aboard, was damaged and the skipper was mildly injured.

The Ever Given was traveling downstream on the Elbe River near Hamburg when it brushed up into the ferry. The vessel did not stop after the crash and instead kept on traveling to avoid an emergency stop in the cramped waterway, according to FleetMon, a global maritime database.

A criminal investigation into the incident found Ever Given’s captain was not at fault and blamed high winds for the collision, the Journal reported.

Winds have also been named as a factor in the recent accident.

Read more: The processor shortage that made the PlayStation 5 and some cars harder to find was almost over – until a ship got stuck in the Suez Canal. Here’s why it’s likely to get even worse.

The 1,300 foot-long cargo ship, one of the world’s largest, became wedged in the Suez Canal early Tuesday morning. Egyptian officials initially blamed the weather, including strong winds and a dust storm. But on Saturday, officials said the logjam could be the result of “technical or human errors.”

The ship is operated by Taiwan shipping company Evergreen, which also operated the ship during the 2019 accident. It’s unclear if any of the crew or the captain were involved in both incidents. The Journal reported it’s unlikely for a ship of the Ever Given’s size to have multiple accidents so close in time.

As of Sunday, crews were still working to free the vessel from the canal. Some progress was made on Friday when the ship’s rudder was freed from the sediment. In a video shared on social media on Saturday, a crew of tugboats celebrated with honking when they managed to move the big boat just slightly.

Officials still cannot say with certainty how long it will take to free the ship. Some hope a high spring tide expected on Monday could help move the vessel.

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Photos taken from a plane flying over the Suez Canal show epic queue of ships as giant container vessel remains stuck

suez canal plane picture
An aerial view of the Suez Canal in Egypt, taken from a commercial flight on March 27, 2021.

  • Aerial photos of the Suez Canal show just how bad the traffic jam of ships has become in recent days.
  • The canal was completely blocked after a giant ship called the Ever Given ran aground on Tuesday.
  • Some container ships have already said they would take a 15,000-mile detour around Africa instead.
  • See more stories on Insider’s business page.

Aerial photos from a plane flying over the Suez Canal on Saturday have shown just how bad the traffic jam of ships has become, five days after a giant container ship ran aground and blocked the vital trade route.

The 224,000-ton freighter called the Ever Given has held up more than 300 other ships needing to travel through the channel, one of the world’s busiest trade arteries.

At least three container ships have said they would take a 15,000-mile detour around Africa instead after analysts watching the situation said it could take days, even weeks, to dislodge the Ever Given, according to Bloomberg.

Read more: When America’s busiest port is log-jammed, the US economy suffers – but these 22 companies thrive

The fiasco is costing the global economy an estimated $400 million per hour and is already causing shortages of toilet paper, coffee, and furniture.

The ship is delaying an estimated $9.6 billion of goods each day, according to shipping data.

suez canal plane picture
An aerial view of the Suez Canal in Egypt, taken from a commercial flight on March 27, 2021.

Efforts are still underway to prise the ship away from the canal’s sides, where it got stuck after a sandstorm on Tuesday.

Some progress was made on Saturday after more than a dozen tugboats managed to move the ship slightly.

General Osama Rabie, Chairman of the Suez Canal Authority, told reporters that the vessel could refloat by Sunday after some water had started running underneath it.

“We expect that at any time, the ship could slide and move from the spot it is in,” he said, according to the BBC.

suez canal plane picture
An aerial view of the Suez Canal in Egypt, taken from a commercial flight on March 27, 2021.

On Sunday, Egypt’s president has ordered preparations to unload the Ever Given ship’s cargo if refloating fails.

The process of removing cargo boxes from the ship is very complex and would take several days.

The Ever Given is one of the world’s largest cargo ships, with space for 20,000 twenty-foot metal containers.

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Video shows tug boats honking in celebration as they moved the lodged Suez Canal ship by 2 inches

ever given suez canal egypt container ship
A ship navigates before a huge container ship named Ever Given, stranded on Wednesday, March 24, 2021, in the Suez Canal, Egypt.

  • Fourteen tug boats honked in celebration after moving the lodged Suez Canal ship by two inches.
  • Officials said they are hopeful the ship will refloat after water started running underneath it.
  • The ship has been blocking the entire width of the Suez Canal for over 100 hours.
  • See more stories on Insider’s business page.

A new video posted to social media on Saturday shows tugboats in the Suez Canal honking in celebration after they were able to move the massive container ship that has been lodged in the sandbank for days by two inches.

Canal officials said “significant progress” had been made after workers dredged about 20,000 tonnes of sand on Saturday, the BBC reported.

Fourteen tugboats moved The Ever Given, which weighs 220,000 tons and is roughly the same length as the Empire State Building, 30 degrees in two directions.

Read more: When America’s busiest port is log-jammed, the US economy suffers – but these 22 companies thrive

However, all other attempts to completely free the giant vessel failed.

The Ever Given, operated by the Evergreen Marine Corporation, has been wedged in the Suez canal for over 100 hours.

More than 300 ships have been forced to queue up on either side of the blockage, with some opting to take a 15,000-mile detour around Africa instead. The fiasco is costing the global economy an estimated $400 million per hour.

General Osama Rabie, Chairman of the Suez Canal Authority, told reporters on Saturday that officials are hopeful the vessel could refloat again by Sunday after water had started running underneath it.

“We expect that at any time, the ship could slide and move from the spot it is in,” Rabie said, according to the BBC.

If digging the sand away and pulling the ship with tugs fails to move it, Rabie said rescue teams might have to start removing some of the ships’ containers – a process that could take weeks.

The Ever Given is one of the world’s largest cargo ships, with space for 20,000 twenty-foot metal containers.

The Japanese owner of the giant container ship on Friday apologized for causing “tremendous trouble” and said that once it refloats, it should be able to operate without any issues.

“We apologize for blocking the traffic and causing the tremendous trouble and worry to many people, including the involved parties,” Yukito Higaki said, according to Al Jazeera.

Read the original article on Business Insider

White House says the US has offered help to re-open Suez Canal: ‘We’re tracking the situation very closely’

ever given suez canal
They’re trying their best.

  • White House press secretary Jen Psaki said the US has offered assistance to re-open the Suez Canal.
  • A massive cargo ship has blocked the major waterway in Egypt for days.
  • “We’re tracking the situation very closely,” Psaki said Friday.
  • See more stories on Insider’s business page.

White House press secretary Jen Psaki on Friday said the United States has offered assistance to help re-open the Suez Canal, a major waterway in Egypt that has been jammed by a massive cargo ship for days.

“We’re tracking the situation very closely,” Psaki told reporters during a press conference. “We understand that Egyptian officials are working to remove the tanker as soon as possible and continue traffic.”

“We’re consulting with our Egyptian partners about how we can best support their efforts,” Psaki added.

The Ever Given vessel is 1,300 feet long and nearly 200 feet wide, or about the size of the Empire State Building. It ran aground early Tuesday, likely due to strong winds and poor visibility, and has since been stuck sideways in the canal.

The blockage has disrupted one of the world’s most important trade routes, which connects Europe to Asia. Hundreds of container ships have been halted because of the enormous boat.

The ship’s owner, Japanese company Shoei Kisen, hopes to dislodge it on Saturday, according to Japanese newspaper Nikkei Asia. The timeframe seems optimistic, as shipping experts have said that it could take weeks to free the vessel.

The canal is responsible for around 10% of global trade, and an estimated 1.9 million barrels of oil are usually transported through the route every day. The London-based shipping-news journal, Lloyd’s List, reported that the maritime traffic jam is costing the global economy roughly $400 million an hour.

“We do see some potential impacts on energy markets,” Psaki said Friday. “Obviously, that’s one of the reasons we offered assistance from the United States.”

Read the original article on Business Insider

After being bottlenecked in the Suez Canal for days, the owner of the cargo ship Ever Given is potentially facing millions of dollars in insurance claims

ever given suez canal egypt container ship
In this image released by the Suez Canal Authority, a freighter named Ever Green is seen with its bow stuck in the canal wall, on Wednesday, March 24, 2021, after running through and blocking the Suez Canal, in Egypt, cutting a crucial step for global freight traffic.

  • The owners and insurers of Ever Given, lodged in the Suez Canal for days, could be facing a hefty insurance bill once unstuck.
  • The main costs could revolve around machinery damage and claims from other ships dealing with delays.
  • Efforts to refloat the ship will resume on Thursday morning local time.
  • See more stories on Insider’s business page.

The owners and insurers of Ever Given, the massive cargo ship wedged in the Suez Canal for multiple days, may face a mountain of insurance claims, according to a new report.

According to Reuters, the owners and insurers of the 1,300-foot-long ship could already be facing millions of dollars of insurance claims when the ship is eventually refloated, mainly due to the costs of the salvage operation as well as the trail of global shipment delays caused by the blockade.

The ship lost control of its steering early Tuesday, and wound up nearly perpendicular in the Suez Canal, effectively blocking traffic both ways completely.

On Tuesday and Wednesday, salvage efforts from smaller tugboats and excavators along the Suez Canal’s banks were unsuccessful, and authorities said that those efforts would resume early Thursday, with an “elite salvage squad” joining in from the Netherlands.

According to Reuters, the ship is owned by Japanese firm Shoei Kisen KK, and the firm’s insurers could have to deal with claims from the Suez Canal Authority due to loss of revenue from the at least 30 ships unable to deliver goods.

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

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

The report added that the ship was insured in the Japanese market and was likely insured for $100-140 million worth of machinery damage.

Other ships will likely tag on insurance claims from the ship’s insurer due to losses to goods on board, many being perishable, as well as delayed deliveries.

“If you have a constant build-up of ships, there are massive supply chain issues,” Marcus Baker, the global head of marine and cargo at insurance broker Marsh, told Reuters.

And the jam is already creating rippling economic impacts, during a year full of supply-chain disasters, with Oil prices rising close to 4% on Wednesday, only 24 hours after the port was blocked.

Screen_Shot_2021 03 23_at_5_48_20_PM
Ever Given, the large yellow vessel pictured, stuck in the middle of the Suez Canal and surrounded by smaller cargo ships.

The report added that more than twenty oil tankers have been affected by the logjam.

Bernhard Schulte Shipmanagement, the technical manager of Ever Given, told Insider that, “there have been no reports of injuries, pollution or cargo damage and initial investigations rule out any mechanical or engine failure as a cause of the grounding.”

And once the ship is fully refloated, “the vessel will undergo a full inspection and BSM will cooperate fully with the relevant authorities on reports of the incident,” according to the statement.

Read the original article on Business Insider

Around-the-world cruises costing up to $500,000 are selling out 2 years in advance as eager travelers prepare for restrictions to lift

Oceania Cruises  insignia
Oceania Cruises’ Insignia ship.

  • As people anticipate an end to the COVID-19 pandemic, some cruises are selling out well in advance.
  • Monthlong trips with Oceania Cruises and Seabourn for 2023 have sold out.
  • Major US cruises are set to return no earlier than May. The CDC temporarily banned them last year.
  • Visit the Business section of Insider for more stories.

Tickets for around-the-world cruises are selling out years ahead of their departure date as travelers anticipate the end of lockdowns and travel restrictions.

When Viking Ocean Cruises released tickets for a 136-day world cruise for late 2021, they sold out in weeks, Bloomberg first reported Monday. The same happened when it announced in December a second cruise to take place at the end of the year, Viking told the publication.

The ships for the two cruises – Viking Star and Viking Neptune – carry 930 passengers each but have left some rooms free for potential quarantine measures, the company told Bloomberg.

The company said it was planning another world-cruise itinerary for 2023, per Bloomberg.

“We are looking to open the next opportunity as quickly as we can,” Richard Marnell, the executive vice president of marketing for Viking, told Bloomberg.

The luxury cruise line Seabourn sold out all penthouse spa and premium suites on its 450-passenger Seabourn Sojourn for two world trips in 2022 and 2023, a company representative told Insider’s Brittany Chang in a statement Sunday. Couples are paying up to $500,000 for a five-month cruise, and the company had to recently open waiting lists, Bloomberg reported.

Oceania Cruises also sold out its 2023 “Around the World in 180 Days” cruise in 24 hours on January 27, Insider reported previously. The Insignia ship, which accommodates a maximum of 684 passengers, travels to five continents, including Antarctica, and 61 UNESCO World Heritage Sites.

Bob Binder, Oceania Cruises’ president and CEO, said in a statement that its quick sale time was due to “pent-up demand.”

Insider has reached out to Viking and Oceania Cruises for comment.

The high demand for tickets is a sign of hope for the struggling cruise industry, which was thrown into turmoil when COVID-19 spread across several ships last March.

The US Centers for Disease Control and Prevention recommends that people avoid traveling on cruise ships, which are especially susceptible to spreading COVID-19.

After the pandemic took hold in March, the CDC temporarily banned cruises in the US to curb the spread of the virus. But in October, the agency replaced its no-sail order with a “framework for Conditional Sailing Order” – a list of requirements necessary for cruise lines to continue sailing again.

The soonest any major US cruise is scheduled to operate is May. Carnival Cruises, Royal Caribbean, and Disney said they would resume sailing after May, while P&O Cruises has stopped all trips through April.

Since COVID-19 vaccines have been rolled out, several large cruise companies, including Carnival, Crystal Cruises, and Norwegian Cruises, have announced vaccine requirements for guests and staff members.

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