The Suez Canal is finally open, and hundreds of millions of dollars in claims are also on the way!

The Suez Canal is finally open, and hundreds of millions of dollars in claims are also on the way!

At 6 pm local time on March 29, navigation was resumed at both ends of the Suez Canal. The giant cargo ship "Changci" that blocked the canal for six days was towed to the widest section of the canal, Daguhu, for inspection.

In addition to affecting global trade activities, the blockage of the "Long Ci" will also trigger a series of insurance claims. The total amount of claims is expected to be at least hundreds of millions of dollars. Egypt has already prepared to claim compensation from the owner of the "Nagai" Japan Masei Steamship Co., Ltd.

Whose responsibility?

According to CNN News, Osama Rabie, chairman of the Suez Canal Authority, said that as of Monday, there are still 422 ships waiting to pass through the canal.

The order of passage will be based on the principle of "first come, first served", but ships carrying livestock can only pass priority. It is estimated that it will take three to three and a half days to wait for the queued ships to pass and end the canal traffic jam.

Mohab Mamish, a seaport adviser to Egyptian President Sisi, said on Monday that the Suez Canal Authority has the right to claim damages from the owner of the "Nagai" ship, Masei Steamship, Japan.

The content of the claim includes the physical loss, economic loss and rescue vessel expenses caused by the grounding of the cargo ship to the Suez Canal Authority.

The director of the Canal Administration Rabbi previously stated that the loss of revenue to the administration caused by the blockage was US$14 million to US$15 million per day.

In addition to the Canal Authority’s claim, Bloomberg pointed out that the "Changci" incident will trigger a series of mutual liability insurance claims: the owner of the cargo on the "Changci" and the cargo owners of other stranded vessels will provide their own insurance These insurers will claim against the "Nagai" shipowner Japan Masae Steamship Co.; Masae Steamship will find its own insurance company to solve the problem.