Home Business The Suez Canal accident ship faces a $1 billion claim. Who will pay for it?
The Suez Canal accident ship faces a $1 billion claim. Who will pay for it?

The Suez Canal accident ship faces a $1 billion claim. Who will pay for it?

by YCPress

On the 3rd local time, the Suez Canal Authority said that after several days of continuous operation, more than 400 ships stranded at both ends of the Suez Canal due to heavy cargo ships stranded have all passed through the Suez Canal.

The Suez Canal Authority has previously said that officials may announce the results of the investigation on the 4th, today, regarding the reasons for the stranding of the cargo ship.

At present, the cargo ship that caused the accident is under technical inspection and related accident investigation in the Great Bitter Lake of the Suez Canal. Egypt said it would claim more than $1 billion for the stranding incident to compensate for the losses and related rescue costs caused by the six-day suspension of the canal.

Some experts said that this incident may become the largest container ship claim in the world, but the final amount of the claim is too early to be determined; in addition, the issue of compensation and payment will not be limited to Egypt’s unilaterality.

According to Egypt, the amount claimed for more than $1 billion includes canal operation losses and ship rescue costs, including equipment costs and labor costs.

According to media reports, the cargo ship involved in the accident is a long-term charter ship. According to the charter contract, the responsibility of the shipowner’s company shall bear the accident caused by the ship due to operational problems or force majeure.

British maritime experts said that the insurance company responsible for commercial insurance of the ship causing the accident will also bear the liability for compensation, but the compensation limit is limited and will only pay part of the loss.

The stakeholders involved in the ship that caused the accident are very complex, which makes the claim and subsequent payment very complicated. The ship is registered in Panama. Its owner is a Japanese company, which is responsible for operating EVAng Shipping Co., Ltd. from Taiwan, and the crew is Indian citizens.