The Suez Canal crisis cost could exceed $1 billion

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Suez Canal
Container ship Ever Given stuck in the Suez Canal, Egypt on March 27, 2021. Kristine Carringer/Maxar

The seaworthiness of the ship and the captain's conduct will be examined as part of an inquiry into how a massive container ship blocked the Suez Canal and slowed international trade.

Divers explored the Ever Given's hull as the man in charge of investigating how the huge ship ran aground, blocking foreign trade across the Suez Canal for nearly a week, boarded the ship.

Captain Sayed Sheasha, the lead investigator who boarded the Ever Given on Wednesday afternoon (local time), said the investigation would look into the ship's seaworthiness and the captain's actions.

Divers had gone to inspect the ship's hull while it was anchored in the Bitter Lakes sector, according to a canal source.

Captain Sheasha confirmed that the captain of the Ever Given was committed to fully cooperating with the investigation.

“The ship will remain in the lakes region until the investigations are completed,” Suez Canal Authority Chairman Osama Rabie said late Wednesday on local television, adding that there was no set time frame for the investigation.

Investigators questioned the crew on Wednesday, according to General Rabie.

“The amount of damage and losses, as well as how much the dredgers drank, will be calculated,” he said, without saying who will pay or whether Egypt had already filed a claim.

“Estimates will cross a billion dollars and a little more, God willing; this is the country's right.”

After the 400-meter-long ship became stuck diagonally across a southern portion of the canal, the shortest shipping path between Europe and Asia, the six-day blockage threw global supply chains into disarray.

On Wednesday, the SCA announced that shipping had returned to normal, with 81 ships passing through the canal on that single day.

According to Egypt's Leth Agencies, 163 ships have passed through the Suez Canal since its reopening, with 292 ships still waiting.

According to commodities analysts Kpler, five liquefied natural gas vessels passed through the canal on Tuesday, and congestion appeared to be “quickly tapering off” at the canal.

The SCA has arranged rapid shipping convoys and announced that it aims to clear the backlog of ships by the end of the week.

The canal blockage is likely to result in a slew of insurance claims, with Lloyd's of London predicting a "large loss" of up to $US100 million ($A131 million), according to its chairman.

Publish : 2021-04-01 09:53:00

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