Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Dislodged ship held in Suez Canal as compensation talks continue

Published 04/13/2021, 08:50 AM
Updated 04/13/2021, 08:55 AM
© Reuters. FILE PHOTO: Ship Ever Given, one of the world's largest container ships, is seen after it was fully floated in Suez Canal

TOKYO (Reuters) - A ship that blocked the Suez Canal for almost a week in March has not been given clearance to leave the waterway as discussions continue over a compensation claim made to the vessel's owner Shoei Kisen, an official from the Japanese company said on Tuesday.

The Ever Given has been in a lake separating two sections of the canal since it was dislodged on March 29, as the Suez Canal Authority (SCA) conducts investigations.

Yumi Shinohara, deputy manager with owner Shoei Kisen's fleet management department, confirmed the canal had made a compensation claim but gave no further details.

A source with the Suez Canal Authority, who declined to be named, told Reuters a court order had been issued for the ship to be held, adding that negotiations were still taking place.

Results of the SCA's investigation were expected to be announced by the end of the week, two canal sources added.

SCA Chairman Osama Rabie said on Egyptian TV last week that the Ever Given would not leave until the investigation was finished and compensation paid. He also said the canal had borne "great moral damage" as well as shipping fee losses and salvage operation costs. He has also said he hoped to settle matters amicably.

International supply chains were thrown into disarray when the 400 metre (430 yard) Ever Given ran aground in the canal on March 23.

Specialist rescue teams took six days to free the vessel, delaying the passage of more than 400 ships and causing others to divert around Africa.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Industry sources told Reuters last week that reinsurers were set to foot most of the bill for the ship's grounding, with payouts expected to run into hundreds of millions of dollars.

Ships typically have protection & indemnity (P&I) insurance, which covers third party liability claims including environmental damage and injury. Separate hull and machinery policies cover vessels against physical damage.

Shoei Kisen's Shinohara said the vessel's P&I insurer UK Club had received compensation claims for the delays. The UK Club told Reuters "a handful of claims" had been received, declining further comment.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.