Ever Given the Legal Battle

[GordMay]

Agreement in principle reached
The Ever Given’s insurer, for third-party losses, the U.K. P&I Club, confirmed the development in an update, released June 23/21:

“Ever Given” Media Statement: Agreement in principle reached
“The UK Club is pleased to announce that, following extensive discussions with the Suez Canal Authority’s negotiating committee over the past few weeks, an agreement in principle between the parties has been reached. Together with the owner and the ship’s other insurers we are now working with the SCA to finalise a signed settlement agreement as soon as possible. Once the formalities have been dealt with, arrangements for the release of the vessel will be made.”
➥ https://www.ukpandi.com/news-and-res...dia-statement/

The SCA originally demanded more than $900 million to cover the loss of transit fees, damage to the waterway during the salvage efforts, and the cost of equipment and labor. It later reduced the amount to around $550 million.
Japan’s Shoei Kisen Kaisha Ltd., the owner, and the ship’s insurers initially offered $150 million.

[LittleWing77]

Originally Posted by GordMay

Agreement in principle reached
"... Together with the owner and the ship’s other insurers, we are now working with the SCA to finalise a signed settlement agreement as soon as possible...

This is very interesting, because it is customary for all parties to sign a non-disclosure agreement (NDA) as part of a settlement.

If so, the final settlement amounts and details (that is, culpability and the SCA/pilot discussions) very probably will not become public now...

LW77

[Pelagic]

My bet is that it is about $175m and it wont officially be disclosed to save SCA face.

[LittleWing77]

Originally Posted by Pelagic

My bet is that it is about $175m and it wont officially be disclosed to save SCA face.

Seems small potatoes, eh, after all the "$500 million" and "$1 billion" amounts thrown around...

LittleWing77

[GordMay]

No information was disclosed on the amount of compensation, with Ossama Rabie [head of the Canal Authority] saying that the parties had agreed not to disclose anything, until the agreement was actually signed [could be signed in the middle of next week].
The Wall Street Journal suggested the preliminary deal calls for about $200m in compensation.
➥ https://www.wsj.com/articles/for-eve...gh-11624444705


Thursday [June 24] the magazine Bloomberg Businessweek, published an in-depth, 6,000 word article looking at how the Shoei Kisen-owned ship become lodged across the canal, for six days in March.
➥ https://www.bloomberg.com/news/featu...the-suez-canal

[Pelagic]

Originally Posted by LittleWing77

Seems small potatoes, eh, after all the "$500 million" and "$1 billion" amounts thrown around...



LittleWing77

Always happens when lawyers and politicians resort to negotiating this in the media .
In reality, the costs will.be much higher than $1 billion .
Ever Given will pay an inflated salvage fee to free them (between $175-200m) based on average costs.
However, SCA will site the "planned" costs of new safety regulations, new standby equipment , new monitoring equipment , new training facilities etc.... to increase transit rates, without actually changing anything .
I give it 6 months before this is announced [emoji849]

[RaymondR]

Originally Posted by Pelagic

Always happens when lawyers and politicians resort to negotiating this in the media .
In reality, the costs will.be much higher than $1 billion .
Ever Given will pay an inflated salvage fee to free them (between $175-200m) based on average costs.
However, SCA will site the "planned" costs of new safety regulations, new standby equipment , new monitoring equipment , new training facilities etc.... to increase transit rates, without actually changing anything .
I give it 6 months before this is announced [emoji849]

As a new area manager I fairly quickly realized that the previous management had been in error in that they resisted any contractual changes or equipment addition requests by our clients - one cannot negotiate larger profits if there are no negotiations taking place.

[donradcliffe]

When I transited the Suez, the 'pilot' insisted on driving the boat, except during his prayer times. We also had a loud discussion on whether he could firewall the throttle. Then there was the baksheesh...

[Pelagic]

Originally Posted by donradcliffe

When I transited the Suez, the 'pilot' insisted on driving the boat, except during his prayer times. We also had a loud discussion on whether he could firewall the throttle. Then there was the baksheesh...

I am assuming Don that this was on a yacht or small boat?
Many of those can barely make minimum speed to keep up with their one way flotilla and pilots will cut corners and max throttle to keep up, if you let them.

[donradcliffe]

It was my Beneteau. We yachts had our own flotilla which made a two day transit and spent the night on a dock in Ismailia. My ancient Perkins 4108 had no trouble keeping up with our flotilla, but overheated if run at full throttle. My memory is a bit fuzzy, but we may have passed a southbound ship convoy at the Great Bitter Lake, which was plenty wide and deep enough for both of us..

[Pelagic]

Yes, Bitter Lake is where north and South Pass.
They normally stick all of the yachts and slower vessels at the back of the train, overnighting near the lake

[GordMay]

Maersk quietly settled its $44 million lawsuit against the companies* behind the Ever Given
* Its operator Evergreen, Bernhard Schulte Ship Management, as well as its owners, Japanese company Shoei Kisen.
More ➥ https://www.msn.com/en-ca/money/comp...02c62547&ei=25

[skipperpete]

The container ship ONE Orpheus swung off course and struck a “bridge” at a speed of 8 knots in the Suez canal on Dec 6 but has been refloated. The video shows substantial damage to the bow and large holes where the hull contacted the two apparently immovable bridge blocks. Seems the SCA learned from the “Evergiven” grounding and had a large deep water salvage tug on station for such an event. The ONE Orpheus looks like she’ll be needing a team of welders and a drydock, and of course the trans shipping of 9,000 TEU.....