The steel boxes stacked on the massive boat which blocked the Suez Canal and boomed the world trade were potentially covered with thousands of insurance policies. They could pay millions of dollars — but first, they are playing games at the moment it seems!
The steels, stacked high on the huge boat blocking the Suez Canal and increasing world trade, could include thousands of insurance policies. They could pay millions of dollars – but first of all a bucking game.
Meanwhile, on Sunday, Suez Canal salvage teams alternated between dredging and tugging to dispatch a bulky container ship that would block the busy waterway, while 2 sources reported that rock under the arch of the ship had complicated efforts.
The Suez Canal Authority (SCA) has stated in a statement that dredgers who are involved in dislocating the stranded vessel have up to now shifted to 18 meters of sand at a depth of 27,000 cubic meters.
SCA Chairman, Osama Rabie announced to Egypt’s Extra News that Egyptian President, Abdel Fattah al-Sisi had ordered preparations for the removal of some 18,300 containers.
The ship itself is part of the insured. According to insurance broker and risk adviser, Marsh, this risk is typically covered in the region of $100 million to $200 million. But how bad the accident is would depend on the payout. Due to the depth of the grounding the propeller could be damaged, but the sandy areas could have caused worse damage.
The payments, well into millions, become incredibly complicated—which involve sharing costs between all stakeholders—when a process called the general average is declared.
Marcus Baker, the Marsh Head of Practice, said, “It is adding enormous complexity to solving the final claim. “We’re talking, years before we can reach a place where everyone knows that they’re there when I say an enormous complexity.”
Although the major risk modelers do not yet produce estimates, the eventual payment for the ship covers a wide variety of insurance sectors.
One of the 13 mutual groups that ensure third party liability on global shipping markets is the United Kingdom’s P&I Club. It covers the Ever for things such as infrastructure damage and blockage claims. The UK club said in due course it will take into account all valid claims.