News: Suez Canal blocked - traffic jam growing by the hour
News & Insights 25 March 2021
A complete blockage of the Suez canal is the kind of realistic disaster that companies and governments plan for but fervently hope never happens. Unfortunately, this has recently occurred.
More than 10% of global maritime trade passes through the Suez canal - that’s typically around 50 vessels each day. A complete blockage of the Suez canal is the kind of realistic disaster that companies and governments plan for but fervently hope never happens. Unfortunately, this has recently occurred - a large cargo ship has been blocking the waterway for 2 days and counting.
Every hour that the canal remains blocked is money wasted both for the operator of the Ever Given and of course, the numerous vessels (around 150 and growing) patiently waiting to use the canal. For the owners of those delayed ships, the payment of hire from charterers may well stop and for charterers, the ship they’ve paid to use is stuck and unable to fulfil its purpose. It is an undesirable situation for all parties.
While engineers and nautical experts frantically work to refloat the ship and get the canal back in use, lawyers are analysing who is responsible and in most cases, how to recover the monetary losses that are accumulating for their clients. Additionally, insurers are gearing up to handle the resulting claims.
However, ship operators who purchased Marine Delay Insurance can mitigate their losses simply and effectively without worrying about legal liability and proving their case. The Standard Club’s Strike & Delay cover for onshore risks is designed to respond to this exact scenario. Members insure their ships for a declared daily indemnity against a range of perils including strikes, port closures, physical obstruction or unexpected border controls. When an incident occurs, the claim process is simple, swift and supportive - as you’d expect from a leading specialist mutual insurer.
Category: Strike & Delay