Evergreen Marine large container ship “Chang Chi ship” recently ran aground in the Suez Canal in Egypt, resulting in the paralysis of the shipping channel.
Caused by the Suez Canal blockage of the Chang Chi freighter was seized by Egypt to claim, the ship’s cargo can not be delivered to the owner in a timely manner, and the ship 3.5 billion U.S. dollars of goods, 80% of the mainland’s exports.
The ship was placed under “preventive detention” by the Egyptian government on April 13 and will not be allowed to sail until the owner pays $916 million in compensation for damages.
According to a report by Caixin.com, the Changci ship was carrying 18,300 containers with a cargo value of about 3.5 billion U.S. dollars, and more than 80 percent of the cargo on board came from China. This is undoubtedly a bad news for the owners who have cargo on board the Chang Chi ship.
A Chinese foreign trade enterprise in charge of three containers of cargo on the Changci ship said: “According to the agreement signed with the European buyer, the goods arrived at the port of Rotterdam, we can receive the final payment, which accounts for 30% of the total payment. Now the Changci ship is detained in the Suez Canal, the time of settlement is far away, and the inability to recover the final payment is a major loss for us.”
Evergreen Marine, the charterer of the vessel, has made it clear that it “will not be responsible for the cargo delay” because “the cargo delay will be covered by insurance”.
In this regard, a Chinese insurance company, said the owner of the Chang Chi ship has announced a common sea loss, for the loss of goods on board, the cargo owners who bought cargo insurance can be covered by the insurance company to share the cost, but did not buy cargo insurance owners can only bear the loss themselves.
A trade source said, according to the previous operation, the cargo owner or insurance company to pay a deposit to pull the goods off the ship, and then transported, “this operation will have a period of time, for those urgent goods, may eventually need to aircraft transit.”
The trade source said, in general common trade terms, freight risk is since the departure of the goods on board the ship will be transferred to the buyer, theoretically need to share the compensation is the consignee. But some goods of lower value or more sensitive to time, the buyer is likely to directly abandon the goods, if not paid in full, Chinese exporters have to bear the loss of goods.
On March 23rd, Egypt local time, the Changci ship operated by Evergreen Marine, a Taiwanese shipping company sailing in the Suez Canal, suddenly swerved sideways and crashed into the sand dike on the right bank of the Suez Canal and ran aground, cutting off the canal. After seven days of emergency rescue, the ship was towed out of the channel in the afternoon of March 29, Egypt time, and the Suez Canal resumed navigation.
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