Corporate news
Corporate news
How is going on when the stranded cargo ship emerged successfully?
Apr 14,2021

The prelude to compensation for the "blocking ship" accident has been opened.
Earlier, the Suez Canal Authority said it would seek more than $1 billion in compensation for the damage and rescue costs caused by the six-day shutdown of the canal, but did not specify who would be responsible for paying the huge sum.
As for the liability for compensation, the lessee of the "The Ever Given", Evergreen Marine Company, stated that as the lessee, it was only responsible for the cargo carried and that the owner of the ship, Shinei Steamboat Company of Japan, should be liable for all losses and compensation.
But these two parties are far from the only ones responsible.

Professional personage points out, "The Ever Given" rescue operation is expensive, huge salvage is to prevent the hull and the common loss of the goods, under the principle of general average, sharing between the owner and the owner, which means that the owner of the vessel also share a large amount of cost, the specific cost apportion them according to the proportion of the cargo value.
The ship is currently under investigation in the Great Bitter Lake area of the Suez Canal where it is moored. The Ever Given cannot leave until an investigation into the cause of the accident is completed and compensation is agreed.

General average refers to a system whereby, in the course of a common maritime adventure, the special sacrifice or expenses directly caused by the measures taken intentionally and reasonably for the common safety of the ship, cargo or other property are shared by the beneficiaries on a pro rata basis.
The normal apportionment of total loss includes: declaring total loss, contacting the consignor, obtaining guarantee before delivery, evaluating the apportionment value of all parties, adjusting, obtaining apportionment from all parties, etc. If there is any lack of cooperation from the relevant apportionment parties, twists and turns may occur at each link.
This is especially true for container ships, which often have many owners and can take years to complete.
The last time a similar general average was declared was after the Maersk Honam fire in 2018. After the declaration of general average, the adjuster set the salvage margin at 42.5% of the value of the cargo and set 11.5% as a total loss margin -- meaning that a shipper of $100,000 worth of cargo would have to pay a total margin of $54,000 to unload the cargo.