The container vessel “Ever Given” grounded in the Suez Canal at about 0540 UTC on 23 March 2021 while transiting northbound (with two canal pilots onboard) through the canal en route Rotterdam, Netherlands. Fortunately, all 25 crew are safe and accounted for and currently there have been no reports of pollution or cargo damage.
Ongoing efforts are underway to safely refloat the vessel and re-open the canal to marine traffic.
From a marine insurance perspective, this incident is unlikely to impact significantly on cargo claims as insurance cover does not usually include delays. Depending on the detail of the policy, insurance is also unlikely to cover damage to cargo caused by a delay. However, if damage caused by delay is included, this might also affect cargo on other vessels impacted by the closure of the canal. Should the re-floating process be successful within the next few days and traffic in the canal can resume, spoiled cargo would be unlikely, however. The time factor will be critical.
The relevant hull & machinery (H&M) and cargo interests, or their insurers, will likely be responsible for the cost of the salvage operations and any General Average costs that may be incurred.
Other claims, including loss of vessel hire or damage to the canal itself are likely to be directed to the protection & indemnity (P&I) or other specialist insurer.
Richard Turner, IUMI President comments:
“From a wider perspective, marine underwriters are continuously assessing the changing profile of the risks they insure. The trend for larger container vessels has highlighted a number of potential issues such as compromised maneuverability in high winds, an increasing number of onboard fires, challenges surrounding salvage, and the lack of availability of suitable repair facilities. Underwriters need to be aware of this.”
Ends
For further information contact:
Mike Elsom
Phone +44 7968 196077
Email mike@mikeelsom.com
About IUMI
The International Union of Marine Insurance e.V. (IUMI) is a non-profit association established for the purpose of protecting, safeguarding and advancing insurers‘ interests in marine and all types of transport insurance. It also provides an essential forum to discuss and exchange ideas, information and statistics of common interest for marine underwriters and in exchange with other marine professionals.
IUMI currently represents 42 national and marine market insurance and reinsurance associations.
International Union of Marine Insurance
Grosse Elbstrasse 36, 22767 Hamburg, Germany
Phone +49 (0) 40 2000 747-0
Email info@iumi.com
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