Box boat aground in Suez Canal

Yep, you got it! I don’t have a problem with the underwriters making a few more bucks if it means the SCA loses its ass because of the higher freight rates. Like I said, maybe it’s time to reconsider the costs vs benefits of the just in time supply chain.

Are the sex shops of Amsterdam the product of containerization? I think they probably did a lot more business when stickships ruled the waterfront and no one cared if it took a month to get there from Japan or wherever dildo production is cheapest.

Handy tool to calculate SCA tolls:

https://www.wilhelmsen.com/tollcalculators/suez-toll-calculator/

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The SCA Calculator above seems to be defective.

I entered Ever Given specs and it gave me mere $500 000 instead of 1 billion dollars.

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From the tool I learned that the Ever Given due to the large draft of 15.4 m had to take a mandatory tug. I cannot remember that such a tug was mentioned assisting the ship. If it was a Dinky Toy tug it probably was of no use for a VLCS as the Ever Given.

Due to the size of the vessel mandatory tug will be added to calculations. This applies to vessels bigger than 14.33 meters.

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The share of the Taiwanese transport company owning the ship blocking the Suez Canal has risen sharply in value since the start of the incident that disrupted world trade.

Shares of the Evergreen Marine Corporation have appreciated 28 percent since the Ever Given was trapped in the Suez Canal on March 23, causing an epic traffic jam of more than 400 cargo ships.

Transportation tariffs are steadily rising as the world struggles out of the pandemic. The blockade of the canal has only exacerbated port congestion and increased demand for shipping. The blockade of the Suez Canal has only added oil to demand and prices. Container shipping rates have quadrupled since the beginning of last year.

A shortage of containers and problems with the logistics to get ships back to Asia are driving higher transport rates for the rest of the year is the expectation. In addition, air traffic is still limited due to the pandemic and companies are more often opting for shipping to transport their goods.

I’ve transited the Suez Canal as Captain over 25 times, some transits before the new canal project was completed and some after. I seem to recall hearing (hearsay) that the pilots make around $300 per shift. If they work 2 ships that day, then $600/day. And add whatever negotiated American cigarettes to that. Maersk (beginning with their US flagged ships) started to deny “presents”; "gifts; “baksheesh” or whatever you’d like to call it back around 2015. There was a lot of pushback from the pilots; canal agents; line boatmen; electrician; and that made it very difficult for the Captain. Canal paperwork was scrutinized much closer for any errors, no matter how slight in the hopes that a mistake would coerce the captain into either paying a fine or relenting to the demands for cigarettes. One trip on my ship (the other captain was aboard), a pilot refused to give helm orders due to not getting his “gifts”. This incident was reported to the SZC pilot association to which the pilot denied the incident from happening. Fortunately this was caught on the ships CCTV and was played back to the SZC pilot assoc. The embarrassment of that led to our transits being more civil. Now that didn’t stop the agents; pilots; boatmen; electricians; etc. from asking for cigarettes, but it emboldened Maersk to have all their ships cut out giving “gifts”. To my knowledge, all US flag Maersk ships no longer hand out gifts and I would say many if not most foreign flag Maersk ships do likewise. That eliminated handing out 15 to 30 cartons of smokes per transit, depending on the circumstances. Of course to encourage this, MLL (US Maersk) stopped allowing captains to write off the smokes as a business expense. Add up all of those smokes with all of the Maersk ships transiting and it comes down to some real $$$. I retired in the summer of 2017 so I can’t speak of todays practice, but believe it to be the same.

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The Ever Given that blocked the Suez Canal for days at the end of March remains detained. An Egyptian court has dismissed the owner’s appeal against the previous seizure.

Authorities are seeking damages of $ 900 million ($ 750 million) from the ship’s owners. That is the amount that Egypt spent on the rescue operation. In April, the court allowed the 400-meter ship to be impounded, while talks about compensation for Egypt were being discussed.

The SCA was conducting investigations into the cause of the ship’s grounding, but has yet to announce the results.

Egypt offered to reduce claims by a third for compensation from owners of the container ship that blocked the Suez Canal in March, Suez Canal Authority Chairman Osama Rabie told MBC Masr channel television channel.

The canal authority said it would reduce the claims for compensation to $600 million from $900 million, according to Rabie. The SCA also offered payment terms to owners of the Ever Given container ship but they have yet to respond, he said.

Cold feet?

UK Club said the reduced amount proposed had not been reflected in SCA’s claim filed at court.

“The Ever Given’s owners still have not been provided with evidence that would support a claim of this size, which remains exceptionally large. The Ever Given’s interests continue to negotiate in good faith with the SCA,” it added.

An Egyptian economic court is due to hold a hearing on May 22 to consider the SCA claim for what it describes as losses due to the blockage and costs for dislodging the ship, SCA sources said.

An Egyptian investigation into the incident found no wrongdoing by the SCA or its pilots, the sources said, without elaborating.

One source said the court could authorize the SCA to auction off the ship if the owner rejected any ruling to compensate the canal authority. Rabie has also mentioned such an outcome.

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Whoever, in the real world, would be foolish enough to topple the North Korean bid of 9999 USD?

The claim rebate’s coincidence with the absurd amount of 300 mio USD for ‘reputation losses’ may not be entirely fortuitous. How could a zero-reputation lose value?
On the contrary, they earned a lot of reputation… as the world’s prime extortionist country.

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