Back to the complete issue
Wednesday, 14 July 2021

Gone but not forgotten

The Ever Given has left Suez. But Suez hasn’t left the Ever Given. The owner of the ship responsible for blocking the Suez Canal for almost a week in March is set to be hit by “many hundreds of thousands” of lawsuits, according to Bloomberg. Two subsidiaries of owner Shoei Kisen won a court order in London yesterday that will put claims on hold for two months, amid expectations that individual cargo owners will soon file thousands of claims against the company, as will the ship’s charterer Evergreen Marine Corp.

The company could be in for years of litigation as everyone affected by the incident — which had global ramifications, heavily disrupting trade across the world — files claims and seeks damages. Fitch Ratings earlier estimated that claims can easily surpass hundreds of mns of EUR, and that it would affect marine reinsurers in particular.

Yesterday’s court order could ease the process a little: The stay could help reduce legal costs for the company by giving the court time to bundle together similar and overlapping claims.

The cost: USD 540 mn and counting. Shoei Kisen and its ins. companies have reportedly paid out USD 540 mn in compensation to the Suez Canal Authority.

The Ever Given was released from the Suez Canal on 7 July after the ship's owners agreed to a compensation settlement with the SCA after months of negotiations.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2021 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of Commercial International Bank (tax ID: 204-891-949), the largest private-sector bank in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; and Act Financial (tax ID: 493-924-612), the leading activist investor in Egypt; and Abu Auf (tax ID: 584-628-846), the leading health foodmaker in Egypt and the region.