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Global supply lines struggle to clear container backlog after Suez chaos

LONDON (REUTERS) - A backlog of container ships carrying consumer goods has grown in some key strategic ports after a near week-long blockage in the Suez Canal, adding to ongoing disruptions to global trade, industry sources say. Dozens of container ships were stuck when the 400-metre-long Ever Given ran aground in the canal on March 23, with specialist rescue teams taking almost a week to free the vessel. The suspension of sailings through the waterway left shipping companies - including container lines - with millions of dollars in extra costs, which were not covered by insurance. "The blockage of the Suez Canal will increase the negative impact on global supply chains in the coming weeks, as the availability of empty equipment, particularly in Asia and Europe, will be affected," Reiner Heiken, chief executive of US headquartered Hellmann Worldwide Logistics, told Reuters. Container shipping companies, carrying products ranging from mobile phones to designer goods, have been contending for months with disruptions caused by the coronavirus pandemic and a surge in demand for retail goods that led to wider logistical bottlenecks including in top consumer market the United States. Wh...

Suez Canal container ship incident a reminder of global trade’s vulnerabilities

SINGAPORE - Just when global sea shipments seem to be starting to flow again, an event at the key Suez Canal literally and figuratively threatens to put a choke-hold on global trade flows. Fortunately, work is under way to free the 220,000-tonne Ever Given container ship, which became stuck on both sides of the canal after heavy winds forced it to drift sideways, effectively blocking the 205m-wide waterway. Please subscribe or log in to continue reading the full article. Get unlimited access to all stories at $0.99/month Latest headlines and exclusive stories In-depth analyses and award-winning multimedia content Get access to all with our no-contract promotional package at only $0.99/month for the first 3 months* Subscribe now *Terms and conditions apply.

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Stranded Suez Canal ship’s owner, insurers face millions in claims

LONDON (REUTERS) - The owner and insurers of one of the world's largest container ships stuck in the Suez Canal face claims totalling millions of dollars even if the ship is refloated quickly, industry sources said on Wednesday (March 24). The 400-metre, 224,000-tonne Ever Given ran aground on Tuesday morning after losing the ability to steer amid high winds and a dust storm, the Suez Canal Authority (SCA) said in a statement, threatening to disrupt global shipments for days. GAC, a Dubai-based marine services company, said authorities were still working to free the ship mid-afternoon on Wednesday, and that information it had received earlier claiming the vessel was partially refloated was inaccurate. The ship's owner, Japanese firm Shoei Kisen KK, and its insurers could face claims from the SCA for loss of revenue and from other ships whose passage has been disrupted, insurers and brokers said. "All roads lead back to the vessel," said David Smith, head of marine at insurance broker McGill and Partners. Shoei Kisen could not be reached for comment. Container ships of this size are likely insured for hull and machinery damage of US$100-140 million (S$135-188 million), insurance sou...