Workers are seen next to a container ship which was hit by strong wind and ran aground in Suez Canal, Egypt March 24, 2021. Suez Canal Authority/Handout via REUTERS

 

By Carolyn Cohn and Jonathan Saul

 

LONDON (Reuters) - The owner and insurers of one of the world's largest container ships stuck in the Suez Canal face claims totalling millions of dollars even if the ship is refloated quickly, industry sources said on Wednesday.

 

The 400-metre, 224,000-tonne Ever Given ran aground on Tuesday morning after losing the ability to steer amid high winds and a dust storm, the Suez Canal Authority (SCA) said in a statement, threatening to disrupt global shipments for days.

 

GAC, a Dubai-based marine services company, said authorities were still working to free the ship mid-afternoon on Wednesday, and that information it had received earlier claiming the vessel was partially refloated was inaccurate.

 

The ship's owner, Japanese firm Shoei Kisen KK, and its insurers could face claims from the SCA for loss of revenue and from other ships whose passage has been disrupted, insurers and brokers said.

 

"All roads lead back to the vessel," said David Smith, head of marine at insurance broker McGill and Partners.

 

Shoei Kisen could not be reached for comment.

 

Container ships of this size are likely insured for hull and machinery damage of $100-140 million, insurance sources say. The ship was insured in the Japanese market, two of the sources said.

 

The cost of the salvage operation is also borne by the hull and machinery insurer.

 

"It is potentially the world's biggest ever container ship disaster without a ship going bang," one shipping lawyer, who declined to be named, said.

 

Planet Labs Inc satellite image shows the "Ever Given", a container ship operated by the Evergreen Marine Corporation, stranded in the Suez Canal, Egypt March 23, 2021. Picture taken March 23, 2021. Planet Labs Inc/Handout via REUTERS

 

Martijn Schuttevaer, spokesman for Dutch marine services company Boskalis, told Reuters its subsidiary Smit Salvage had been hired to help with the operation. A team of around 10 people is heading to Egypt.

 

SUPPLY CHAIN ISSUES

In addition, owners of the cargo on board the ship and on other ships stuck in the Canal will likely claim from the ship's liability insurer for losses to perishable goods or missed delivery deadlines, the sources said.

 

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

 

UK P&I Club said in an emailed statement to Reuters that it was the protection and indemnity insurer for the Ever Given, but declined to comment further. This segment of insurance covers ships against pollution and injury claims.

 

The bulk of those insurance claims will then likely be reinsured through a programme run by the wider International Group of P&I Clubs, Smith at McGill said.

 

At least 30 ships were blocked to the north of the Ever Given, and three to the south, local sources said. Several dozen ships could also be seen grouped around the northern and southern entrances to the canal.

 

Analytics firm Kpler said more than 20 oil tankers carrying crude and refined products were affected by the disruptions.

 

Rahul Khanna, global head of marine risk consulting at Allianz Global Corporate & Specialty (AGCS), said there could also be claims for damage to the canal. Photos shared by the SCA showed a digger removing earth and rock from the bank of the canal around the ship's bow.

 

Groundings are the most common cause of shipping incidents in the canal, with 25 in the past 10 years, according to AGCS.

 

However, insurers look unlikely to face claims for spillage into the canal. Bernhard Schulte Shipmanagement, the vessel's technical management company, said there were no reports of pollution.

 

(Additional reporting by Kirstin Ridley in London and Anthony Deutsch in Amsterdam; Editing by Emelia Sithole-Matarise)

 

-- © Copyright Reuters 2021-03-25

 

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Ouch!! I wonder how close the heavy gear needed is to get her turned hope it’s resolved soon 

It says that the vessel had a "Blackout" .The bow and stern thrusters  that they use to navigate in canals because the rudder is useless at slow speeds are driven by electric motors. Someone in the engine room is in big trouble. 

The fee for crossing the Suez canal for large vessels can be   $200K - 400K. so  the canal is loosing a lot of money right now being closed. and some one has to pay. 

I’d bet money she doesent have a bow thruster most likely single screw I am surprised that in such a vital waterway they are allowed to sail without an escort tug expense most likely wouldent want to have been the pilot on that fiasco!!yeiks!!

At least this occured in the new channel and traffic is now flowing in the old channel.

 

Still going to cost someone a lot of $$$.

 

18 minutes ago, Tug said:

I’d bet money she doesent have a bow thruster most likely single screw I am surprised that in such a vital waterway they are allowed to sail without an escort tug expense most likely wouldent want to have been the pilot on that fiasco!!yeiks!!

This is an 225,000 ton vessel.....400metres in length....not some chinese fishing boat!

2 minutes ago, ChrisY1 said:

This is an 225,000 ton vessel.....400metres in length....not some chinese fishing boat!

Yup Still bet she’s a single screw no thruster vessel could be wrong though lol 

Blame the Brakes  ????

8 hours ago, Tug said:

Yup Still bet she’s a single screw no thruster vessel could be wrong though lol 

Looking at the clips on the news it has two bow-thrusters.

It's still the Captain's fault no matter what.

9 hours ago, Tug said:

Yup Still bet she’s a single screw no thruster vessel could be wrong though lol 

 

Two bow thrusters and two more towards the stern as far as I can make out from the hazard markers on the hull. That would be normal for a ship of this size.

I worked that ship ( EVER GIVEN ) at the Evergreen dock many times in L.A. as a crane operator. Yes it does have thrusters.

9 hours ago, Tug said:

Yup Still bet she’s a single screw no thruster vessel could be wrong though lol 

That is a bet you would lose

The Ever Given is only three years old. not possible that it would had been designed without bow and stern trustors,   

10 minutes ago, nervona81732 said:

I worked that ship ( EVER GIVEN ) at the Evergreen dock many times in L.A. as a crane operator. Yes it does have thrusters.

Sorry , I didn't see your post , before I posted below.

 

9 hours ago, Crossy said:

At least this occured in the new channel and traffic is now flowing in the old channel.

 

Still going to cost someone a lot of $$$.

 

I am by no means a seafarer but where is this old channel? Seems a lot of traffic built up either side of this stuck vessel.

4 minutes ago, Upnotover said:

I am by no means a seafarer but where is this old channel? Seems a lot of traffic built up either side of this stuck vessel.

 

Me neither, just reporting what was reported in the media.

 

But I don't see a second channel in that area either.

6 minutes ago, Upnotover said:

I am by no means a seafarer but where is this old channel? Seems a lot of traffic built up either side of this stuck vessel.

 The Atlantic ???? 

1 hour ago, sirineou said:

That is a bet you would lose

The Ever Given is only three years old. not possible that it would had been designed without bow and stern trustors,   

 

From Wikipedia:-

 

Name:	Ever Given
Owner:	Shoei Kisen Kaisha[1][2]
Operator:	Evergreen Marine
Port of registry:	Panama City
Builder:	Imabari Shipbuilding (Imabari, Japan)
Yard number:	S-1833
Laid down:	25 December 2015[3]
Launched:	9 May 2018[3]
Completed:	25 September 2018[3]
Identification:	IMO number: 9811000 MMSI number: 353136000 Call sign: H3RC
General characteristics
Class and type:	Golden-class container ship
Tonnage:	220,940 GT 99,155 NT 199,629 DWT[3]
Length:	399.94 m (1,312 ft 2 in)[3]
Beam:	58.8 m (192 ft 11 in)[3]
Draught:	14.5 m (47 ft 7 in)[3]
Installed power:	MAN B&W 11G95ME-C9 (59,300 kW)[4]
Propulsion:	Single shaft; fixed pitch propeller Two bow thrusters[4]
Speed:	22.8 knots (42.2 km/h; 26.2 mph)
Capacity:	20,124 TEU[5]

 

 

 -----> 2 Bow-Thrusters. 

 

 

3 hours ago, Crossy said:

 

Me neither, just reporting what was reported in the media.

 

But I don't see a second channel in that area either.

 

There isn't. Parts of it have two channels north of the Great Bitter Lake.  

2 hours ago, andersonat said:

 

From Wikipedia:-

 

Name:	Ever Given
Owner:	Shoei Kisen Kaisha[1][2]
Operator:	Evergreen Marine
Port of registry:	Panama City
Builder:	Imabari Shipbuilding (Imabari, Japan)
Yard number:	S-1833
Laid down:	25 December 2015[3]
Launched:	9 May 2018[3]
Completed:	25 September 2018[3]
Identification:	IMO number: 9811000 MMSI number: 353136000 Call sign: H3RC
General characteristics
Class and type:	Golden-class container ship
Tonnage:	220,940 GT 99,155 NT 199,629 DWT[3]
Length:	399.94 m (1,312 ft 2 in)[3]
Beam:	58.8 m (192 ft 11 in)[3]
Draught:	14.5 m (47 ft 7 in)[3]
Installed power:	MAN B&W 11G95ME-C9 (59,300 kW)[4]
Propulsion:	Single shaft; fixed pitch propeller Two bow thrusters[4]
Speed:	22.8 knots (42.2 km/h; 26.2 mph)
Capacity:	20,124 TEU[5]

 

 

 -----> 2 Bow-Thrusters. 

 

 

Thanks I stand corrected lol 

How do they navigate in a dust storm with zero visibility. Gps?

18 hours ago, Tug said:

I’d bet money she doesent have a bow thruster most likely single screw I am surprised that in such a vital waterway they are allowed to sail without an escort tug expense most likely wouldent want to have been the pilot on that fiasco!!yeiks!!

You're right - she has two.

An interesting tool for seeing what's out there floating around: https://www.marinetraffic.com/en/ais/home/centerx:32.584/centery:30.017/zoom:12

9 hours ago, Gandtee said:

How do they navigate in a dust storm with zero visibility. Gps?

Radar and ECDIS, plus a local pilot.

18 hours ago, Gandtee said:

How do they navigate in a dust storm with zero visibility. Gps?

Not very well, it would seem.

13 hours ago, EVENKEEL said:

Radar and ECDIS, plus a local pilot.

I know nothing about seamanship so laugh if you like. I know the weight of the ships anchors must be tremendous but with modern machinery is it not possible to lay out an anchor. Even onto the opposite bank and assist the tugs by winching itself off the bank?

40 minutes ago, Gandtee said:

I know nothing about seamanship so laugh if you like. I know the weight of the ships anchors must be tremendous but with modern machinery is it not possible to lay out an anchor. Even onto the opposite bank and assist the tugs by winching itself off the bank?

There has to be a reason the why tugs can't do the job. Ship probably has about 1000ft of chain but the anchor windlass is made to pull up the anchor not move a ship, the motors couldn't handle it.

40 minutes ago, Gandtee said:

I know nothing about seamanship so laugh if you like. I know the weight of the ships anchors must be tremendous but with modern machinery is it not possible to lay out an anchor. Even onto the opposite bank and assist the tugs by winching itself off the bank?

 

That anchor itself would be heavy enough to be a problem just to be moved, let alone positioning it out of the water and using it for this recovery.

 

I am sure that the SMIT guys there now will know about and consider all of the possible solutions. 

On 3/25/2021 at 7:28 AM, Crossy said:

At least this occured in the new channel and traffic is now flowing in the old channel.

 

Still going to cost someone a lot of $$$.

 

Tried to find that old canal but cannot.

 

 

Snap from Google Earth (exactly where the colour of water changes

 

 

And zoomed out

 

 

 

I see the part between Great Bitter Lake and Port Said has 2 "lanes" for part of the way, but I don't see another between Suez and the lake.

 

Curious about it... when you mentioned that it made me pull out Google Earth and check it. Was never interested in it before, to be honest.