SCA and Evergreen urged to speed up
The next review hearing in the Egyptian courts for the 'Ever Given' is scheduled for June 20, while the owners and the SCA appeared to be no nearer an agreement on the level of compensation for the blockage of the canal. The SCA has reduced its claim from $916m to $550m, but firmly rejected an offer from the Japanese owner of the ship of $150m to free the vessel. The two sides seem a long way away from resolving the issue. Caught in the middle of this legal battle is the cargo, with an estimated value of some $1bn, the owners of which have no say. North European importers with containers onboard the 'Ever Given' may have already decided to abandon the cargo, due to the time-sensitive nature of product, contracts of sale being frustrated and/or markets having been lost. The Singapore-based Mathu Jagannath, director of marine claims consultancy firm NAU Pte, has urged the SCA and shipowner to consider the cargo interests, as the longer this saga continues, the greater will be the losses arising out of the incident. All the parties were urged to consider all the options available to deal with this issue, including the release of the vessel from arrest so it can continue with its voyage. The shipowner has declared General Average. The process cannot be completed until the ship is able to discharge its boxes. The 'Ever Given' is worth $183m, having increased its value by around $13m since it ran aground by keeping with spiralling asset values in the container sector. It is not known whether its operator, Evergreen, which has leased the vessel on a long-term charter, is still paying daily hire.
SCA: One person died during salvage work
One person reportedly died while helping free the 'Ever Given', the Suez Canal Authority said n a Facebook post. The circumstances around the person's death were not clear. In several statements on the SCA's official Facebook page, posted from May 26 to May 27, canal authorities listed the damages sustained because of the incident. Among them, it notes "one death, the sinking of one of our rescue boats and 48 ships having to find alternative routes." In another statement posted on Facebook, the authority stated: "The highlighted losses incurred by the S.C authority due to the incident of the grounding crisis of Ever Given that can be seen is the damage to a number of participating marine units and the sinking of one of SCA marine units during the salvage operations, resulting in the death of one of the participants." It was unclear who died and how exactly this reported death occurred. There is also no record of a tug or marine unit sinking during the operation.
SCA rejected claims of UK Club
On June 5 the Suez Canal Authority (SCA) rejected claims made by the giant Ever Given insurer UK Club, and said that exceeding set speeds at the country’s strategic canal is the sole responsibility of the ship captain. The SCA said that vessels crossing Suez Canal are subject to a set speed of 14 to 16 km per hour according to the type of the transiting vessel according to Article 54 of the Navigation Book of Rules. Article 58 stipulates that the SCA shall assign two escorting tugs to container ships carrying a tonnage of 170,000 tons and above, adding that such rule was applied to the giant ship. “According to the aforementioned, the vessels shall comply with the stated speed in accordance with the Navigation Book of Rules when transiting the canal; and exceeding these speeds is the sole responsibility of the ship master.". The SCA’s statement came a few days after UK Club said that the speed of the 'Ever Given' was controlled by the canal’s operator before it ran aground.Upload News