Praveen Godbole comments

Posted in: Japan shipowner asks cargo owners to share Suez damage cost See in context

Shipowners asking cargo owners to share costs incurred in refloating the vessel and cost of damages to canal, is a standard practice in maritime trade, known as General Average. In any case, all costs/damages/expenses (including legal expenses), will ultimately be picked up by insurers of Ship and Cargo. Current stalemate is with regard to quantum of damage/losses suffered by canal authority, exact quantum of which has not been established. That is why providing a bank guarantee, pending working out exact amount for which shipowners are liable, is a sensible way out.

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Posted in: Japan shipowner asks cargo owners to share Suez damage cost See in context

Why can't shipowners provide a bank guarantee for the amount claimed by canal authority as a security for release of ship, until court decides the exact amount of damages to be paid by shipowners? The ship can't be detained indefinitely until court takes a final call. This is a standard practice in financial disputes pending in courts.

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