April 5, 2021
The Ever Given, the container ship that had been blocking the Suez Canal for nearly a week, was finally declared officially free. The ship had initially been freed from its lodged position on March 29, but a legal and compensation dispute between the ship's owners and the Suez Canal Authority resulted in the Ever Given being held in the Great Bitter Lake until a deal was reached.
Suez, Egypt | Suez Canal Authority
On April 5, 2021, the Ever Given, a massive container ship operated by the shipping company Evergreen Marine, was officially declared free and allowed to resume its journey after being detained since its refloating. The ship had become famously lodged in the Suez Canal on March 23, 2021, obstructing one of the world’s most critical maritime trade routes for six days until it was refloated on March 29.
The Ever Given became stranded across the Suez Canal during a sandstorm, exacerbated by high winds and reduced visibility, causing a major global supply chain disruption. The incident blocked the 193-kilometer waterway, through which roughly 12% of global trade passes, leading to a backlog of hundreds of ships and significant economic repercussions worldwide.
After intense dredging efforts and tugboat operations, the ship was eventually freed. However, it was not allowed to continue its journey immediately due to disputes over compensation between the ship’s owners, Shoei Kisen Kaisha, and the Suez Canal Authority (SCA).
Following its refloating, Ever Given was anchored in the Great Bitter Lake, a wide part of the canal where vessels wait during transit. The Suez Canal Authority demanded compensation for the obstruction, damages to the canal, and costs incurred during the salvage operation. The ship’s owners and insurers entered negotiations with the SCA, initially met with a significant claim by the canal authority.
An agreement was eventually reached on April 5, allowing the Ever Given to depart the area. The terms included a confidentiality clause, but reports indicated it entailed a substantial reduction from the original financial claim.
The Ever Given incident highlighted the strategic vulnerability of global trade routes and spurred discussions about maritime logistics and the need for alternative passageways or enhancements to existing ones. It underscored the importance of the Suez Canal in global commerce and the potential repercussions of shipping disruptions. The event also raised awareness among shipping companies about navigational risks and sparked renewed interest in ship size and design standards.
Source: www.bbc.com