Suez Canal blockage: damage costs

ever given suezAccording to the Suez Canal Authority (SCA), the container ship "Ever Given", which has been stuck since 23 March 2021 across the Suez Canal, has been put afloat once again.

Maritime traffic has resumed and all of the 400 ships that have been stuck since the blockage began until 28 March can now resume their journey.

For the canal authorities, Egypt has lost revenues ranging between 12 million and 14 million USD for each day of closure.

The specialized magazine Lloyd's List has estimated that the container ship is blocking the equivalent of approximately 9.6 billion USD of goods every day.

For the insurer Allianz, each day of blockage could cost the world trade between six and ten billion USD.

The ship, 400 meters long and 59 meters wide, weighing 220 000 tons and carrying nearly 22 000 containers, is insured for damages between 100 and 140 million USD.

The P&I Clubs, specialists in shipowners' liability, have an amount of 3.1 billion USD available for the insurance coverage.

The total loss could include:

  • damage to the vessel
  • vessel salvage and removal costs
  • third party liability claims, particularly for damage to the canal and loss of canal profits
  • loss of any perishable goods in the cargo
  • claims for business interruption and loss of income due to the blockage.
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