The American Bureau of Shipping completed its survey and concluded that the ultra-large container ship Ever Given, which had blocked the Suez Canal for almost a week at the end of March, was fit for onward passage. Unfortunately, the ship will remain at anchor in the canal’s Great Bitter Lake, as the Suez Canal Authority (SCA) had the ship arrested the day before.
The ship is being held in the waterway as authorities pursue a $916 million compensation claim against its owner, according to the vessel’s insurer. The SCA claim includes $300m for salvage and $300m for “loss of reputation”, which appears set to be rejected by the vessel’s insurer.
The UK P&I 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 insurer revealed it had already made a compensation offer to the SCA this week. The $300 million for salvage is in addition to the actual charges for services by the salvage contractors who freed the grounded ship.
“We are disappointed by the SCA’s subsequent decision to arrest the vessel today,” the company’s statement added.
From a statement by the UK P&I Club:
Despite the magnitude of the claim which was largely unsupported, the owners and their insurers have been negotiating in good faith with the SCA. On 12 April, a carefully considered and generous offer was made to the SCA to settle their claim. We are disappointed by the SCA’s subsequent decision to arrest the vessel today. We are also disappointed at comments by the SCA that the ship will be held in Egypt until compensation is paid, and that her crew will be unable to leave the vessel during this time.
The SCA has not provided a detailed justification for this extraordinarily large claim. The grounding resulted in no pollution and no reported injuries. The vessel was re-floated after six days and the Suez Canal promptly resumed their commercial operations. The claim presented by the SCA also does not include the professional salvor’s claim for their salvage services which owners and their hull underwriters expect to receive separately. The P&I aspects of the claim are relatively modest, with the exception of a claim for loss of reputation, which is disputed.
SCA had the ship arrested..
Next time there’s troubles with the state board of boilers, and pressure vessels compliance, they’ll arrest the boiler, and not the engineer!
I presume they have pitched their claim low enough that Evergreen wont be tempted to abandon her and pay them nothing. I expect lawyers are putting in orders for new yachts on what they are going to make in fees.
With regard to the above comments unless the boiler is in a ship it is free from arrest !! As to the lawyers getting new toys with their fees that could help with the economy !!
Ship arrest is a process by which a ship is prevented from trading or moving until the maritime matter in question is resolved. It is granted by an Admiralty Court to secure the maritime claim and is unique to Admiralty Law.
My personal thoughts are that the SCA pilots made a misjudgment in advising the ship’s Bridge Team on the handling of the ship and the SCA is in “protection mode”.
Good Watch.