business

Suez Canal says deal reached to free seized vessel

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By SAMY MAGDY

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It would be nice to know if the ship’s insurance will cover theses costs and if the insurance companies were involved in the negotiations.

I doubt anyone at JT understands the process, however the maritime press has been covering this mess in detail. Shortly after the Ever Given grounded, her owner declared "General Average". Below is a great explanation of what it is. Note in this case General Average invokes the York-Antwerp rule of what qualifies for sacrifice under General Average and item 1 is Salvage Renumeration.

https://maxfreights.com/general-average/

The ship owner will have liability insurance through what is called a "P&I Club" for Protection and Indemnity Club. These are non-profit mutual insurance companies who rely solely on premiums from club members to pay losses. They have no capital underwritten by shareholders. If a loss is too great the club will have to bill members for the added expense.

There is nothing simple about the organization of the businesses involved in the maritime industry.

1 ( +1 / -0 )

Btw, Ever Given has been released and is underway in the Great Bitter Lake.

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