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Apr 15, 2021

Updates - Ever Given: SCA seeks around US$1bn compensation by holding ship

Image for Updates - Ever Given: SCA seeks around US$1bn compensation by holding ship

Royal Westminster Boskalis NV is a leading global dredging and offshore contractor. The Press Release mentions:

  • the Ever Given's 224,000 ton weight, 400m length and 60m width;
  • For the re-floating approximately 30,000 cubic meters of sand were dredged to help free the vessel and a total of eleven harbour tugs and two powerful seagoing tugs were used.

Click here for the Press Release

Salvage costs in the Suez Canal tend to be expensive according to an article on Tradewinds available here "and are expected to make up one of the costliest elements of Ever Given claims."

According to Tradewinds, the Suez Canal Authority is seeking around US$1bn in compensation for the grounding and closure for six days.

"Shoei’s principal third-party liability insurance, which would cover the SCA’s claims for damage and financial loss, is with the UK P&I Club." according to the Tradewinds article.

Update - 14 April - detention of Ever Given

According to gCaptain.com (Reuters originally) and as mentioned on the BBC, in the quest for its compensation, the SCA is apparently holding the Ever Given until its Japanese owner pays up. See article here.

Update 15 April

The UK P&I Club issued a statement on 13 April available here saying that it is disappointed that the SCA has detained the Ever Given, saying "On 7 April, the owners of the container vessel “Ever Given” received a claim from the Suez Canal Authority (SCA) for the sum of US $916 million. 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 Ever Given is apparently worth only US$100m - cargo unknown.

The US$916m figure excludes SMIT Salvage's claim for professional salvage services, which Shoei Kisen and its Japanese market hull underwriters expect in due course.

Image source: Boskalis