Suez chaos leaves shipping companies counting the 'lost expenses' cost

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The owners and charterers of ships unable to sail through the the Suez Canal for nearly a week face at least $24 million in expenses they will be unable to recoup as their insurance policies do not cover them, industry sources say.

Ship Ever Given, one of the world's largest container ships, is seen after it was fully floated in Suez Canal, Egypt March 29, 2021. REUTERS/Mohamed Abd El Ghany

Ships typically have various types of insurance, including protection & indemnity for pollution and injury claims. Separate hull and machinery policies cover vessels against physical damage. “Tanker owners don’t get paid demurrage for canal delays, they incur the waiting days and cost on their own account,” one shipping source said on condition of anonymity.

These expenses include additional fuel costs, lost days when the ship was unable to complete its voyage and extra supplies. Fitch Ratings said on Monday that reinsurers could face losses totalling hundreds of millions of euros from the blockage..

 

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Could have been a lot worse, a lot!!!

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I'm sure us peasants will end up paying for it..insurance companies scrambling for cover now.

I suppose they’ve disarmed the threat of nuclear war.

Can’t they figure out how to pass the cost on to consumers? Or is that ‘understood?’

اللهم صّلِ وسَلّمْ عَلۓِ نَبِيْنَا مُحَمد RT

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