According to the British “Guardian” report on March 24, Taiwan’s Evergreen Shipping, a super large container ship with a carrying capacity of 20,124 TEU and a full load of 219,079 long tons, was launched at local time. On the 23rd, it ran aground on the main channel south of the Suez Canal, causing the Suez Canal to cease operations. According to domestic sources, the outage may affect a month or even several months.

According to the person concerned, the cause of the accident was “the bow shifted and stranded due to strong winds, and the stern drifted to the other side of the river and stranded.” If his remarks are true, who will be responsible for the huge economic losses caused by the accident bear? If the remarks are not true, the accident was actually caused by the crew’s improper operation, how should the blame be held?

He used to invest in shipping companies and ports for 7 years. This question is also professionally related. It should be said that the compensation for this incident. Generally, it is jointly undertaken by the charterer of the East Ship and the Suez Canal Authority. Let me give you a popular science on the way of international shipping. A owns a ship, but he does not necessarily have the source of goods, or he does not necessarily operate the ship to transport goods, so A is the owner of the ship. B is the person who operates the ship. He takes the transportation order and rents the ship from A, and then dispatches the crew to operate the ship to transport the goods. Changrong is in this role (if the crew is further subdivided, there are also those who specialize in ship management. Company, this will not start), C is the person who manages this river, the Suez Canal Authority. So if, as the report said, due to strong winds and other weather conditions, the ship’s main engine happened to be malfunctioning and caused the grounding, then it can be said that all three parties are actually responsible. Therefore, the final compensation will be jointly borne by the three parties. Operationally, if Evergreen declares a general average, then the loss of the ship and the cargo will be evenly shared by several related companies. However, it should be noted that the compensation here is only for the direct economic losses caused by the congestion, that is, the ship stranded, the delayed delivery of the damaged hull, and the related expenses paid for the rescue of the ship. This is actually not much money, and most of them still have insurance. The media often headline that the party is willing to exaggerate that the squadron has caused tens of billions of dollars in economic losses a day. Of course, these are not required to be paid. You use a simple example to think that you had a car accident on an overpass and blocked the road. Other vehicles on the road that are blocked to deliver important goods are late for delivery. Does the person who caused the accident need to pay for the economic losses caused? You can’t win a lawsuit. How do you calculate the hundreds of millions of dollars here? Generally speaking, if you use a boat for a day, you will have to pay for one day, even if you park in the port, you will have to charge for one day. You can think of this as the rent of a boat for one day. As the congestion caused you to wait three more days at the anchorage, then the three-day rent will be counted as the loss caused by the congestion. Obviously, it is unreasonable for you to pay this money to the company that is stranded. Just like if you rent a car and there is a traffic jam on the highway, if you rent a car for another day, the car rental company will only ask you for money. You can’t recourse to the family who caused the accident. Because you choose to go this way, and if something happens, you don’t go around, and you insist on waiting here. It’s your own decision. The reason for this is simple. On the one hand, boat jams are a common occurrence. Don’t talk about the canal, even if you transport it to the dock. For example, this wharf only has two berths for unloading containers, but there are 30 ships arriving at the port, so you have to wait in line at the anchorage outside the port. If only two ships can be unloaded from two berths a day, then 30 ships will be enough. Have to wait two weeks. In the era when my country’s iron ore freight rates soared in 2008, there were many iron ore ships waiting at the anchorage for a month. There was no place for Shougang’s cargo to unload, and all the cargoes were pulled to Guangxi port for unloading. You have to pay for the relevant losses. To bear, of course, you can also enter the freight to be borne by the shipper. If a hurricane on the sea requires a detour, it will also be delayed for several days. When encountering military exercises, such as China launching a missile in the Indian Ocean, it also needs to wait or detour… So shipping companies are far from making a fuss as everyone thinks. When signing the terms of carriage, the necessary delays were taken into account by itself, such as waiting for two days for the boat. This is commonplace in the shipping industry itself. It’s just that the Suez Canal is blocked, and delays for this reason are relatively rare. On the other hand, in terms of compensation, you can’t say that waiting outside is directly caused by the congestion. Of course you can say that because of the boat jam, I was late for delivery, and I rented the boat for a few days. These are all losses, so you should pay. But because the ship was jammed, your delivery was late, and the CIF price of a certain product went up instead. In case, you make more money. Do you want to return to Evergreen? and so. No matter which party pays, it will not be responsible for an uncertain profit or loss. Third, the Suez Canal is blocked. In fact, the other way to travel between Europe and Asia is to go south and detour the Cape of Good Hope. Whether the shipping company can contact your own ship, you have to choose whether to wait for the dredging or to make a detour. Around the Cape of Good Hope for 8-10 more days, wait, you just bet that you can pass within 8-10 days. This is your own decision, especially after the news has spread all over the world, you still choose not to detour to the canal. This is your own choice. Why should others pay for it? Therefore, the conclusion is 1. The shipowner, shipping company, and canal party will share the losses. 2. The losses are limited to direct losses, delayed losses, and extra costs such as the rent caused by the congestion, and each person bears each person’s expense.

zhiwo

By zhiwo

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helpmekim
6 months ago

Even if there is responsibility, the main responsibility should be the shipowner, but the shipowner will only find the insurance company to indemnify according to the insurance, and the insurance company has a cap on the compensation. The losses of other ships are basically borne by themselves. Even if it is improper operation by the crew, it is also a problem for the shipowner.
If the main cause is high winds, then there is no shipowner’s responsibility, and the force majeure factor is unlucky.

heloword
6 months ago

Although the “Longci” freighter, which has bottomed and stranded on the Suez Canal, has already straightened its hull and has gradually resumed its route, huge claims may still be inevitable. According to insurance companies, cargo ship owners and their insurance companies may face income loss claims filed by the Suez Canal Authority, as well as navigation interruption claims filed by other ships. The owner of the cargo carried by the freighter and the cargo carried by other affected vessels may also file a claim for fragile cargo or missed delivery deadlines. According to comprehensive reports by the Bank of China and other media, as the stranded freighter is a member of the P&I Club, its Japanese shipowners may be able to obtain liability insurance from the P&I Club. It is reported that the ship’s insurance company is the British Shipowners’ Mutual Insurance Association. Public information shows that the P&I Club Group is composed of 13 member associations, which provide liability insurance for approximately 90% of the world’s ocean shipping tonnage, and will jointly share claims in cases over US$10 million. The British P&I Club, one of the 13 member associations of the P&I Club, stated that it has insured the owners of stranded freighters to deal with “certain claims that may arise from accidents like this one”. In addition, the freighter will face a long list of claims, such as the bills of the salvage company. An Renli, chief economist of Swiss Re, said in an interview with the 21st Century Business Herald that this incident reflects the fragility of the global production system and supply chain. Freight traffic has caused a series of delays due to congestion, but it still takes time to confirm the direct or indirect losses and insurance compensation, but it needs to be emphasized that these businesses and risks need insurance coverage. The latest research by the German insurance company Allianz shows that the blockade of the Suez Canal caused by the stranding may cost global trade between 6 billion and 10 billion U.S. dollars per week. The above answer is from 21st Century Business Herald reporter Li Zhihong

helpyme
6 months ago

The former shipping workers said that the key lies in how the responsibility is determined. The reasons reported now have not been officially recognized. The specifics are not known. In terms of the status of the Suez Canal, there is a high probability that the three parties will wrestle. If it is caused by force majeure (gale) according to current reports, it falls within the scope of the carrier’s exemption, and the cargo owner will not receive compensation. If the crew made an operating error, they should apply for maritime arbitration and demand compensation after the liability is determined.

sina156
6 months ago

According to the person in charge of shipping, the navigation fee for large ships on the Suez Canal is about 1.8 million or 3 million per day, and about 5,000 ships are navigable every day. Calculating a day’s interruption will cause 90 million losses. After the accident, more than 360 ships were trapped in place, and some even began to turn to the Cape of Good Hope at the southern tip of the African continent. Due to the container ship contact causing part of the shore to collapse, the reconstruction work is likely to continue after the reefing operations are completed, so the amount of compensation is still unknown. An insurance company proficient in shipping pointed out that the Suez Canal may negotiate with the insurance company that Zhengrong Steamship has insured. The ships that hit the rocks are operated by Taiwanese shipping company Evergreen. In the second half of the 19th century, Bernhard Schulte Management, a large ship management company established in Germany, was responsible for arranging 25 Indian crew members. The shipping company does not make a huge investment, but purchases a ship for shipping, and the owner entrusts the management of the ship to other companies and collects lease fees from the shipping company. Known as the universal “chartering” in the world shipping industry, Japan has adopted a risk diversification mechanism since the Meiji era. When chartering the ship, the owner is also responsible for the damage or accident to the hull, so he will join the insurance. Insurance is divided into hull insurance and response to cargo and oil spill accidents. A stranded container ship may damage the bottom of the ship. The person in charge of Zhengrong Ships stated that the repair costs “will undoubtedly apply to insurance.” On the other hand, a person concerned said: “For the compensation for the losses caused to the canal, Zhengrong Ships is likely to use insurance and other methods. The British maritime newspaper “Lloyd’s” calculated that as the canal was blocked, many ships The daily loss caused by the trap is 9.6 billion US dollars. However, the compensation for this loss seems to be solved by the insurance insured by the owner of the trapped ship. Although the ship will incur additional costs when using alternative channels, it has been in the past. Judging from the occurrence of similar compensation lawsuits, such compensation claims are often not recognized. Therefore, it seems that few companies have filed lawsuits taking into account factors such as cost and time. Although the world maritime transportation industry has adopted various countries and regional operators to perform their own actions. However, if a loss accident occurs, it will also bring a burden to the shipowner.

yahoo898
6 months ago

The shipowner, charter party, and canal party should bear the direct losses. Each party may hold the blame down to the individual, as for the delay loss and the rental cost caused by the blockage, they will bear each other. 1. Direct economic losses So far, the parties have roughly estimated the accumulated possible claims costs as high as 100 million U.S. dollars (about 650 million yuan) or more. The compensation for this incident is generally borne by Chuan Dongfang (Japan’s “Zhengei Steamship”), the charterer (Taiwan) and the Suez Canal Administration. If the cause of the accident is finally investigated, it is indeed due to strong winds and other weather factors, and it happens that the ship’s main engine fails to cause the grounding, then it can be said that the three parties actually have certain responsibilities. Therefore, the final compensation will be jointly borne by the three parties. Operationally, if Evergreen declares a general average, then the loss of the ship and the cargo will be evenly shared by several related companies. The compensation here is only for the direct economic losses caused by the blockage of the freighter, that is, the ship is stranded, the hull is damaged, the delayed delivery of the cargo, and the related expenses paid for the rescue of the ship. 2. Indirect economic loss The indirect economic loss caused by blocking the canal does not require compensation. For example, the driver of a vehicle caused a car accident on an overpass due to improper driving, and the road was blocked. Other vehicles are blocked due to delays in the delivery of important goods, and the economic losses caused by this do not need to be paid by the driver who caused the accident.

leexin
6 months ago

In fact, the shipowner of this ship is a Japanese company. The insurance company insured by the shipowner generally insures direct losses such as rescue ship damage. The insurance company may not compensate for the economic losses caused by the blockage of the canal. It is the shipowner or the charterer. Compensation may require a long legal battle.

greatword
6 months ago

According to this news, Wanwan is going to tear each other with the Japanese. “Shortly after the stranding incident, Taiwan Evergreen, which chartered the “Longci”, quickly responded that the owner of “Longci”, the Japanese shipowner Masei Steamboat Co., Ltd., should be responsible for all losses. The Suez Canal’s own policies also indicate The ship’s carrier should not be blamed, even if the pilot of the freighter ran the ship aground. Evergreen may only need to pay extra time, because the ship’s own insurance may be as high as US$200 million. “Marsh” Insurance Brokers and Risk Consultants Said that this type of insurance usually covers between 100 million and 200 million U.S. dollars, but the amount of compensation will depend on the severity of the accident. “It can be seen that the funeral is not considered a big funeral, regardless of whether it is Wanwan compensation or Japanese compensation.

loveyou
6 months ago

Satellite cloud picture of the Suez Canal in Egypt. As the blockade of the Suez Canal entered its third day, the engineering team responsible for clearing the blockage warned that it may take “weeks” to dig out the stranded giant container ship. Usama Rabie, chairman of the Egyptian Suez Canal Authority, issued a statement on the 25th, saying that rescues for cargo ships stranded in the Suez Canal are still continuing and the canal is suspended. 1. Consequence 1: Loss of up to 400 million US dollars per hour. The Suez Canal connects the Mediterranean and the Red Sea. It is located at the critical point of the intercontinental zone of Europe, Asia and Africa. About 12% of world trade is transported through the canal. According to the Suez Canal Authority, in 2020 Nearly 19,000 ships pass through the canal, an average of about 50 ships per day. The Suez Canal’s “Great Cypriot Ship” lost as much as US$400 million (about 2.6 billion yuan) per hour. 2. Consequence 2: International oil prices rise. Canal revenue is one of the main sources of Egypt’s fiscal revenue and foreign exchange reserves, which will lead to an increase in international oil prices. 3. Consequence 3: It has a huge impact on global trade. 7% of the world’s maritime trade volume is through the Suez Canal, of which 35% is the Red Sea and Persian Gulf coastal ports, 20% is the ports of India and Southeast Asia, and 39% is the Far East. area. Has a huge impact on global trade.

strongman
6 months ago

Sanfangba Shipping Company Insurance Company and the directly responsible party of the Suez Canal. In fact, the compensation is not as much as everyone imagined. Although the indirect economic loss is 2.6 billion a day, the 2.6 billion is actually not responsible for the three parties. The real responsibility is the ship. Collision damage repair costs, excess fuel costs, and canal tug fees may be around 10 to 20 million.

stockin
6 months ago

The company has to pay most of it. It is said that the whole ship skips electricity, and the electrician will not escape. Suez has always been in formation. How can it be said that the wind only blows you but not others. The previous 21,000TEU is all right, after all, it is the lack of faults of the crew above.

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