UKP&I club concerned for ship’s 25 Indian crew after ‘Ever Green’ arrest by Suez Canal Authority

UKP&I club concerned for ship’s 25 Indian crew after ‘Ever Green’ arrest by Suez Canal Authority
Ch Sushil Rao | Apr 14, 2021 https://timesofindia.indiatimes.com/india/ukpi-club-concerned-for-ships-...

HYDERABAD: Out of the nearly one billion dollars demanded by the Suez Canal Authority (SCA) as compensation for the ‘Ever Given’ mishap, 300 million dollars has been claimed for ‘loss of reputation’.

The ‘Ever Given’ ship which went aground in the Suez Canal and refloated after six days has been arrested by the authorities.

There are 25 Indian crew onboard the giant ship which is now at the Great Bitter Lake in the Suez Canal area.
The vessel went aground on March 23 and was refloated on March 29.

Since then the ship has been under investigation. The vessel was insured by the UK Club for Protection and Indemnity (third party) liabilities.

“We are disappointed at comments by the Suez Canal Authority that the ship will be held in Egypt until compensation is paid, and that her crew will be unable to leave the vessel during this time, UK P&I club said in a statement on April 13 confirming the arrest of ‘Ever Given’.

The P&I club said that on April 7, the owners of the container vessel “Ever Given” received a claim from the Suez Canal Authority (SCA) for the sum of US $916 million.

Despite the magnitude of the claim which was largely unsupported, the owners and their insurers have been negotiating in good faith with the SCA.

“On April 12, a carefully considered and generous offer was made to the SCA to settle their claim. We are disappointed by the SCA’s subsequent decision to arrest the vessel today,” the P&I club said in a statement on April 13.

It said the SCA had not provided a detailed justification for this extraordinarily large claim, which includes US$300 million claims for a "salvage bonus" and a US$300 million claim for "loss of reputation".

The grounding resulted in no pollution and no reported injuries.

The vessel was re-floated after six days and the Suez Canal promptly resumed its commercial operations. The claim presented by the SCA also does not include the professional salvor’s claim for their salvage services which owners and their hull underwriters expect to receive separately.
The P&I aspects of the claim are relatively modest, with the exception of the claim for loss of reputation, which is disputed, the P&I club said in a statement.
It said the owners had cooperated fully with the SCA throughout their investigation into the cause of the grounding. “We understand the investigation is now complete. When the grounding occurred, the vessel was fully operational with no defects in her machinery and/or equipment and she was fully manned by a competent and professional Master and crew.

Navigation was being conducted under the supervision of two SCA pilots, in accordance with the Suez Canal Rules of Navigation,” it said.
The vessel’s classification society, the American Bureau of Shipping (ABS), completed their surveys on April 4 and issued a certificate of fitness to allow the vessel to move from Great Bitter Lake to Port Said where she will then undergo re-inspection before completing her voyage to Rotterdam. The owners will continue to negotiate with the SCA, the P&I club said.

The UK Club said it was working with all parties involved. “Our priority is the fair and swift resolution of this claim to ensure the release of the vessel and cargo and, more importantly, her crew of 25 who remain on board,” it said.

“Ever Given” grounded in the Suez Canal on March 23 and following the efforts of the ship’s crew, international salvage experts and local resources coordinated by the SCA, she was re-floated on March 29 and moved to anchor at Great Bitter Lake where she remains.

“The vessel owners and managers have provided full cooperation to the SCA throughout their investigations. The vessel’s Voyage Data Recorder (VDR) data and all other requested information have been provided to the investigators,” it said.

The UK Club has insured the owner of “Ever Given” for certain third-party liabilities that might arise from an incident such as this - including, for example, damage caused to infrastructure or claims for obstruction.

The vessel itself and its cargo will have been insured separately.

“While the UK Club is unable to comment on any confidential insurance or potential claim details, all valid claims will be considered by the vessel owner, the UK Club and its legal advisors in due course,” the statement said.