Companies that have containers on the Ever Given could have to help pay the up to $1 billion Egyptian authorities are demanding before the ship leaves the Suez Canal

ever given suez canal
The Ever Given container ship in the Suez Canal on March 29, 2021.

  • The Suez Canal Authority said the Ever Given can’t leave until $1 billion in damages is paid.
  • The $1 billion would likely include paying for the tugboats and dredging ships that freed the ship.
  • The owner of the Ever Given declared “General Average,” so insurance could pay some of the damages.
  • See more stories on Insider’s business page.

Though three weeks have passed since the Ever Given first became stuck in the Suez Canal, the massive container ship is still anchored after Egyptian authorities announced $1 billion must be paid before it can leave.

“The vessel will remain here until investigations are complete and compensation is paid,” the head of the Suez Canal Authority, Lt. Gen. Osama Rabie, told a local news station.

But Rabie hasn’t publicly explained where the $1 billion estimate came from nor did he provide a breakdown of expenses from the incident.

An estimate of the damages that the $1 billion could include paying for:

  • Transit fees – Refinitiv, a London-based financial firm, estimated that Egypt lost $95 million in transit fees while the Ever Given blocked the Suez
  • Two dredger ships
  • 11 tug boats of varying size
  • Wages of 800 Egyptian workers that operated around the clock to free the ship
  • Damage to the canal
  • Other miscellaneous equipment used to free the ship, such as excavators

Abdulgani Serang, the general secretary-cum-treasurer of the National Union of Seafarers in India, likened Rabie’s $1 billion demand to a ransom and said the crew shouldn’t be held against their will while the ship is anchored and motionless.

“If the SCA has suffered losses, they can sort it out with those involved with the ship, but that cannot haul up seafarers in any manner,” Serang told the Times of India.

Serang told Insider that though they are not allowed to leave the ship, the crew are not imprisoned or on a form of house arrest.

“They are all onboard the ship and continuing with their work as required onboard,” Serang said. “Absolutely no cause to worry about their supplies, including their wages all being taken care of as per the union agreement like before the incident.”

The Ever Given’s newest challenge: insurance

Ever Given, Suez Canal
Container ship Ever Given stuck in the Suez Canal, Egypt on March 27, 2021.

Neither Egypt nor the Suez Canal Authority explained who could be responsible for the full $1 billion demand, but recent filings in London’s High Court suggest that the expenses could be split between the Evergreen, its insurers, and cargo owners on the boat.

The owners of the Ever Given filed a General Average claim in early April against Evergreen Marine Corp, the company leasing the ships. The suit included 15 other defendants who would likely be asked to chip in on the bill.

General average is a principle of maritime law that requires any of the ship’s customers to share the risk and costs involved if the ship faces a tragedy or failure.

“Evergreen Marine received a notice from the lawyer representing EVER GIVEN’s owner on the 1st April which specified that the owner had filed an Admiralty limitation claim at the High Court of Justice in the UK in accordance with the Merchant Shipping Act 1995, in view of the liabilities and compensation that may occur due to the grounding incident,” a spokesperson for Evergreen told Insider.

Declaring General Average would prevent Shoei-Kisen, the owner of the ship, and its insurance from paying the bulk of damages from the shipwreck but could lead to even longer waiting times for people to receive the goods still on the ship.

The British International Freight Association announced in a statement that if a company has containers aboard the ship, they will be asked for “an indemnity or deposit,” but noted that “any standard marine insurance policy” includes General Average losses. If a company did not insure the ship, however, then a cash deposit will be necessary to receive the containers.

If a company has cargo aboard the Ever Given without insurance and cannot pay the deposit, there is a possibility that the freight could be discarded, according to a release from the International Federation of Freight Forwarders Associations.

Read the original article on Business Insider

Maersk, the world’s largest shipping company, says the Suez Canal blockage’s economic fallout will continue into second half of May

Ever given
The Ever Given container ship after it was refloated.

  • The Suez Canal blockage will continue rippling through the economy for weeks, Maersk said.
  • Effects will still be seen in the “second half of May,” an executive told The Financial Times.
  • In its latest update, Maersk said about 50 ships had been delayed for about a week.
  • See more stories on Insider’s business page.

Fallout from the Ever Given’s time lodged in the Suez Canal will “ripple” through the economy for the next few weeks or months, according to Maersk, the world’s biggest shipping company.

“We will see ripple effects continuing into the second half of May,” Lars Mikael Jensen, head of Maersk’s Global Ocean Network, told The Financial Times.

The Ever Given, which is among the world’s largest container ships, was lodged in the canal for six days, effectively closing one of the world’s most important trade routes.

The Ever Given was operated by the Taiwan-based shipping company Evergreen Group. The ship was freed on March 29.

Maersk predicted knock-on effects from the blockage. In an updated press advisory posted on Thursday, the company said it was pleased to see that the queue waiting at the canal was rapidly diminishing.

“For each day that passes we are getting a clearer picture of what this incident means for our customers,” the company said.

Maersk said about 50 ships had been delayed for about a week because of the blockage. Some of those ships waited on either end of the canal, while others were redirected around the Cape of Good Hope.

The effects of those delays will be felt in ports around the world, the company said. Its advisory warned that delays may vary by location. Busy ports and terminals may not have berths for ships arriving outside their originally scheduled windows.

The company previously said shipping backlogs may take months to unravel.

“Even when the canal gets reopened, the ripple effects on global capacity and equipment are significant and the blockage has already triggered a series of further disruptions and backlogs in global shipping that could take weeks, possibly months, to unravel,” Maersk said in a statement back when the Ever Given was still lodged in the canal.

Read the original article on Business Insider

We calculated how much 2-day shipping would cost without an Amazon Prime membership, and the tally proves why the $119 fee is worth it

If you buy through our links, we may earn money from affiliate partners. Learn more.

amazon prime shipping features
  • Amazon Prime includes free 2-day shipping for members, who pay $119 per year.
  • For non-members, shipping is free with purchases over $25, but not guaranteed within 2 days.
  • If a non-member placed 2 orders per month and paid for 2-day shipping, they’d spend about $144 per year.
  • While there are many perks of a Prime membership, free two-day shipping is one of the best.

An Amazon Prime subscription offers its members many benefits (more than 25, in fact), but one of the best and most popular perks is free two-day shipping. The convenience of purchases delivered straight to your door, sometimes only within hours of ordering, is well worth the annual cost of Prime alone.

Non-Prime members have to order at least $25 of eligible items to get free shipping, and orders aren’t guaranteed to arrive within two days. If you order less than $25, you’ll be charged a shipping fee, which varies on the shipment weight and selected shipping speed.

For example, ordering an Anker Powerline+ II USB-C Cable, our pick for the best smartphone charging cable, would typically cost $15 with free two-day shipping for Amazon Prime members. Since the order amount is less than $25, non-Prime members would have to pay $6 extra for standard shipping, $10 for two-day shipping, and $13 for one-day shipping. Of course, that cost may vary depending on location, shipment weight, and Amazon seller.

Assuming $10 is the average cost of tw0-day shipping, if you opt for two-day shipping on two under-$25 orders per month, an annual subscription to Amazon Prime would still be cheaper ($119 v.s. $144 per year).

This doesn’t even account for all of the perks and benefits included with Prime, like access to Prime Video and deals during the upcoming sales event, Amazon Prime Day 2021.

If you’re in the Contiguous US and willing to pay the yearly fee, you’ll have a handful of different shipping options at your disposal, year-round:

No matter how many benefits Prime membership offers, it’s inevitably up to you to determine if it’s worth the cost to join. Whether it’s because you’re not much of an online shopper or you just don’t feel like the $119 membership is for you, you can still qualify for free shipping that’s fast enough if you’re able to spend over $25 per order.

Read the original article on Business Insider

Egypt’s first female ship captain fears for her career after she was blamed falsely for the Suez Canal blockage when she was aboard a vessel 200 miles away

ever given suez canal
Ever Given, a Panama-flagged cargo ship, that was wedged across the Suez Canal and blocking traffic in the vital waterway is seen Saturday, March 27, 2021.

  • Marwa Elselehdar is Egypt’s first female ship’s captain.
  • Online rumors and fake news headlines blamed her for the Ever Given grounding, she told the BBC.
  • Elselehdar was actually 200 miles away from the incident when it occurred.
  • See more stories on Insider’s business page.

Egypt’s first female ship’s captain was blamed for the Suez Canal blockage despite having been hundreds of miles away from the incident, she told BBC News.

Marwa Elselehdar said that she saw online rumors accusing her of being responsible for the Ever Given container ship becoming beached, the media outlet reported.

At the time of the jam, Elselehdar was working as a first mate on the Aida IV. This vessel was in Alexandria – more than 200 miles away from the site of the collision.

An investigation is underway to explain the Ever Given’s grounding, but it is clear that the 29-year-old was not to blame.

Read more: The 4 biggest losers of the Suez Canal fiasco – and 4 surprising winners

Rumors circulating online about Elselehdar’s supposed culpability were made worse by the sharing of screenshots of fake news headlines, BBC News reported.

Several social media accounts also impersonated her and spread false claims putting the blame on her, the media outlet said.

“I felt that I might be targeted maybe because I’m a successful female in this field or because I’m Egyptian, but I’m not sure,” Elselehdar told the BBC.

The young woman described how she was “shocked” when she first saw the baseless accusations on her phone.

The rumors concerned her. “I tried so hard to negate what was in the article because it was affecting my reputation and all the efforts I exerted to be where I am now,” she said in the BBC interview.

A post shared by Marwa Elselehdar💫مروة السلحدار (@marwa.elselehdar)

Elselehdar is one of the few women in the heavily male-dominated shipping industry.

In 2016, she became the youngest and first female Egyptian captain to cross the Suez Canal. A year later, she was honored by Egypt’s president during Egypt’s Women’s Day celebrations, the BBC said.

She hopes that her career, despite this unfortunate setback, inspires other women to break into the industry.

“My message to females who want to be in the maritime field is fight for what you love and not let any negativity affect you,” she told the BBC.

Read the original article on Business Insider

The epic traffic jam of 400 ships caused by the Ever Given blockage of the Suez Canal is cleared, Egyptian authorities say

suez canal ever given
Photographers take pictures of ships sailing through the Suez Canal as traffic resumes after the “Ever Given” container ship operated by the Evergreen Marine Corporation, was freed after blocking the waterway route for almost a week.

  • A shipping backlog of more than 400 ships was caused by the Ever Given blocking the Suez Canal.
  • The 61 ships that remain stranded are expected to pass through the waterway on Saturday.
  • Problems caused by the blockage could take months to resolve, the world’s biggest shipping company warned.
  • See more stories on Insider’s business page.

The shipping backlog that built up after the Ever Given container ship became lodged in the Suez Canal should come to an end on Saturday, authorities told Reuters.

The 61 remaining ships of the 422 that were left stranded after the major blockage are expected to pass through the waterway imminently, the Suez Canal Authority’s chairman, Osama Rabie, said.

Around 85 ships in total are set to pass through the canal on Saturday, he added.

Read more: The 4 biggest losers of the Suez Canal fiasco – and 4 surprising winners

Last Monday, the Egyptian president’s advisor for the canal authority told Bloomberg that it could take “around a week” to get all of the ships out of the canal’s corridor.

If the remaining ships successfully pass through the waterway on Saturday, the backlog’s end will have beaten expectations by a couple of days.

The reopening of the canal, however, will likely not mark the end of the disruption.

The world’s biggest shipping company, Maersk, warned on Monday that the shipping problems caused by the Ever Given could take months to resolve, Insider’s Sinéad Baker reported.

“Even when the canal gets reopened, the ripple effects on global capacity and equipment are significant and the blockage has already triggered a series of further disruptions and backlogs in global shipping that could take weeks, possibly months, to unravel,” Maersk said.

The 1,300-foot Ever Given container ship was stuck for about 152 hours, with the blockage’s total costs reaching an estimated $60 billion.

Rabie told local television stations that an investigation into what caused the costly jam is ongoing and will reach its conclusion next week, Reuters reported.

“The investigation is going well‮ ‬and will take two more days. Then we will announce the results,” Rabie said.

Read the original article on Business Insider

An engineer working to free the Suez container ship says the bow is still stuck and re-floating it was the easy part

ever given refloated monday 29 march suez canal
The Ever Given, after it was partially refloated, in the Suez Canal, Egypt March 29, 2021.

  • The Ever Given has been re-floated and its rear freed from the bank of the Suez Canal.
  • But its front is still stuck, and freeing that will be harder, said an expert involved in the work.
  • Dutch dredging CEO Peter Berdowski said “don’t cheer too soon” at progress so far.
  • See more stories on Insider’s business page.

The CEO of the Dutch company that helped re-float the Ever Given in the Suez Canal said it’s too soon to celebrate, predicting that the last stages will be the most difficult.

Peter Berdowski, CEO of dredging specialists Boskalis, has been working with Egyptian authorities to free the massive container ship that got stuck almost a week ago.

For six days, the ship has blocked one of the world’s most crucial maritime passages, causing havoc for at some 400 ships waiting to pass through, according to Lloyd’s List.

So the news early Monday that the Ever Given had been re-floated, and its stern freed, was greeted with relief from mariners and a victory lap by Egyptian President Abdel Fattah El-Sisi.

As of 11.30 a.m. local time, new maneuvers were under way to continue the progress, according to a statement from the Suez Canal Authority (SCA).

Lt. Commander Osama Rabie, chair of the SCA, said that “in all certainty work will be complete very soon.”

But Berdowski warned Monday that there are more struggles ahead. “Don’t cheer too soon,” he told Dutch radio station NPO Radio 1, according to the Associated Press (AP).

While the stern of the ship is free, its bow is still stuck fast in the canal’s clay sand banks, he said Monday.

“The good news is that the stern is free but we saw that as the simplest part of the job,” the AP reported him as saying.

“But she is still stuck in the mud,” he said, according to Reuters.

A spokesperson for the company said there is a 70% chance the ship would come free on Monday, according to Dutch newspaper De Telegraaf.

“If we don’t succeed, we will also dredge underneath the ship. So far, this has only been done on the sides,” the paper reported the spokesperson as saying.

ever given suez canal
Dredging work at the Ever Given on Thursday, as seen from space.

CNN producer Mick Krever tweeted translated excerpts of the interview, in which Berdowski said that lightering the vessel – taking the cargo off – might still prove necessary.

Without the stern fixed in one place to provide leverage, the work to move the bow will be harder, Krever quoted Berdowski as saying. The bow is still stuck “rock solid,” he added.

Read the original article on Business Insider

Massive ship blocking the Suez Canal has been freed

suez canal ever given egypt
Stranded container ship Ever Given, one of the world’s largest container ships, is seen after it ran aground, in Suez Canal, Egypt March 26, 2021

  • After being stuck since Tuesday, the Ever Given has been “partially refloated.”
  • The massive cargo vessel caused a blockage in the Suez Canal, straining global trade.
  • It’s still not known when the canal will be open the hundreds of ships waiting to enter.
  • See more stories on Insider’s business page.

A massive container ship stuck in the Suez Canal has been “partially refloated,” Bloomberg News reported, citing shipping services provider Inchcape. Inchcape said in a tweet the boat is now being “secured.”

The Ever Given had been stuck sideways across Egypt’s canal since Tuesday, clogging a vital artery for the global economy and forcing multiple ships to turn around and reroute through Africa.

After freeing the bow from the banks of the canal, tugboats are now working on straitening the vessel’s course so it can continue moving up the waterway, the Wall Street Journal reported. The ship’s rudder was freed from the sediment on Friday.

“It is good news,” Osama Rabie, chairman of the Suez Canal Authority, told The Journal. “We are not finished yet, but it has moved.”

A shipping source told Reuters that the ship has restarted its engines. Two sources also told the outlet that the ship was straightened and will be inspected before being moved.

It’s unclear how soon the canal would be opened up to the hundreds of ships that are stuck waiting for it to clear.

Reuters reported that following news the ship was refloated, crude oil prices fell by $1 per barrel to $63.67.

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 nearly six-day blockage forced some ships to take a costly, dangerous detour thousands of miles around the southern tip of Africa and was reportedly costing the global economy $400 million an hour in delayed goods. The Ever Given is operated by the Taiwan-based shipping company Evergreen Group.

Tugboats and dredgers had been working to free the ship for days with little success.

In a video shared on Twitter, boats could be heard honking after the ship was freed. Another clip appeared to show the ship moving again as the sun was rising.

This is a developing story. Check back for updates.

Read the original article on Business Insider

An unusually high ‘spring’ tide might help refloat the Ever Given on the Suez Canal, reports say

Suez canal ever given
The Ever Given in the Suez Canal.

  • An unusually high spring tide is expected in the Suez Canal on Monday.
  • The tide, also called a king tide, could help refloat the Ever Given, according to multiple reports.
  • If the ship can’t be moved soon, teams will begin removing some of its containers.
  • See more stories on Insider’s business page.

Tides go out, then come back in again but the boat blocking the Suez Canal still won’t budge.

Monday, however, will bring an unusually high tide, called a “spring” tide, to the canal. It’s expected to push the canal’s water level up as much as 18 inches, which could help dislodge the Ever Given, as The New York Times and other outlets reported.

Tugboats and dredging crews are working to refloat the ship, which has been blocking the canal since Tuesday. They moved it slightly on Saturday. But Monday’s tide will add a little extra room for it to float, which might help move the ship, according to experts.

“The significance of this high water is that it’s higher than at the time of the grounding so in theory it gives you your best shot,” a retired British Navy commander, Tom Sharpe, told The Wall Street Journal.

Suez Egypt
Tides for the next seven days at the Suez Canal.

“You have a significant increase in water in there,” Richard Meade, a managing editor of Lloyd’s List Maritime Intelligence told Bloomberg.

Spring tides are also called “king tides,” according to the National Oceanic and Atmospheric Administration (NOAA0. The “spring” is a reference to the “springing forth” of the tide as a new or full moon arrives, according to NOAA.

Spring Tide Graphic NOAA
Spring tides occur with the arrival of a new or full moon.

After Monday, when the spring tides peak, the high tides will begin getting lower, according to data from Tide-Forecast. As the tides become lower, it may become more difficult to refloat the Ever Given, although Reuters reported that experts were divided on the subject.

If the ship can’t be moved soon, teams will begin removing some of the containers aboard the ship, attempting to lighten its load, Lt. Gen Osama Rabie, the chairman of the Suez Canal Authority, told reporters on Saturday. That process may take weeks.

“I think the most likely outcome is that it will be refloated on Sunday or Monday. But the worst case (stuck for weeks) is a real possibility,” Clemens Schapeler, of Transporeon, told Reuters.

Read the original article on Business Insider

Tankers and container ships, including Cheniere and Shell/BG vessels, are changing course to avoid the Suez Canal logjam

ever given suez canal
Ever Given, a Panama-flagged cargo ship, that is wedged across the Suez Canal and blocking traffic in the vital waterway.

  • Cheniere and Shell/BG vessels change routes to avoid congestion at the Suez Canal in Egypt.
  • The logjam has disrupted one of the busiest trade routes in the world.
  • At least 10 tankers and container ships are altering course.
  • See more stories on Insider’s business page.

At least 10 tankers and container ships, including two that are carrying natural gas for Cheniere and Shell/BG Group, are averting their routes to avoid the congestion in the Suez Canal, CNBC reports.

The outlet quoted MarineTraffic spokesman Georgios Hatzimanolis as saying: “We expect that number to go up as this closure progresses. From Asia to Europe we are seeing ships divert in the Indian Ocean, just below the southern tip of Sri Lanka.”

MarineTraffic released data showing the diversions. According to the service, there are 97 shipping vessels stuck in the upper end of the canal, 23 vessels waiting in the centre, and 108 vessels in the lower end, as reported by CNBC.

Data showed that one tanker, named Maran Gas Andros, left Texas on March 19. It is apparently carrying 170,000 cubic meters of liquified crude oil.

According to the CNBC report, it changed course, along with other tankers, in the middle of the North Atlantic Ocean, before diverting to go around the Cape of Good Hope.

The most recent update on the Suez Canal crisis came from a statement by Evergreen, the corporation that owns the stricken Ever Given vessel. It said more than 20,000 tons of sand and mud have been removed in a dredging operation.

The rudder and propeller are fully functional and expected to provide additional support to tugboats, according to the statement.

Egyptian president Abdul Fattah al-Sisi has made plans to ease the pressure on the stranded ship, according to the BBC. That would involve moving some containers to another vessel or land near the canal.

The rescue team is carrying on with the dredging efforts and will resume endeavours to refloat the shipping vessel at 14:00 local time on Sunday.

Read the original article on Business Insider

Egyptian authorities say ‘human error’ may be to blame for the Suez Canal Ever Given crash after initially attributing it to strong wind

ever given ship jam suez
MARCH 26, 2021: Maxar’s WorldView-2 collected new high-resolution satellite imagery of the Suez canal and the container ship (EVER GIVEN) that remains stuck in the canal north of the city of Suez, Egypt.

  • Officials initially blamed the giant Ever Given container ship running aground on weather conditions.
  • The Suez Canal Authority chief initially said “strong winds and a dust storm” had caused the blockage.
  • He has now raised the possibility of “technical or human error” as being to blame.
  • See more stories on Insider’s business page.

Egyptian authorities suggest the Ever Given ship running aground on Tuesday morning could be due to “human error,” according to MailOnline.

It is a revision of initial claims that blamed environmental factors for the epic Suez Canal jam. Officials initially said that the 1,300-foot-long cargo ship became stuck due to troublesome weather conditions.

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

Lieutenant-General Osama Rabie, chair of the Suez Canal Authority (SCA), said on Tuesday that it probably happened due to “strong winds and a dust storm that obstructed the view,” according to the Egyptian newspaper Al-Masry Al-Youm.

But Rabie has since gone back on this assessment. “Strong winds and weather factors were not the main reason,” the SCA chief said on Saturday.

The incident that prompted a global trade blockage may have been caused by “technical or human errors,” he said, the MailOnline reported.

Moments before it ran aground, the Ever Given was apparently traveling faster than a speed limit set by the Suez Canal Authority, Bloomberg reported.

The Ever Given’s last recorded speed was 13.5 knots, logged 12 minutes before it grounded, according to Bloomberg, which cited its own data. The maximum allowed speed through the canal was between 7.6 knots and 8.6 knots, the report said.

The Japan Times also reported the ship was traveling 13.5 knots, adding that two canal pilots were on board when the ship hit land.

The Ever Given didn’t have a tugboat escort through the canal, according to Bloomberg. The two ships immediately ahead of it reportedly had escorts, although such escorts were not required.

One ship captain unaffiliated with the grounding spoke with Bloomberg. Chris Cillard, the captain, told the outlet ships sometimes speed up to better control their vessels during wind storms. “Speeding up to a certain point is effective,” he said.

The massive container ship is still wedged in the Suez Canal, over five days since it first became lodged.

Workers have made a “significant process” in freeing up the canal and have managed to release the ship’s rudder from the sediment, Insider’s Michelle Mark reported.

The Ever Given’s Suez Canal blockage costs an estimated $400 million per hour, Insider’s Kelsey Vlamis reported.

Rabie said during a Saturday press conference that he couldn’t speculate on when the ship will be re-floated.

Read the original article on Business Insider