(4 minutes read)
· As the uncertainty about the tilted ships MV EVERGREEN continues to haunt the global movement of merchandize trade, Egypt has made it clear that it is not obliged to pay compensations for ships delayed in the Suez Canal
· According to Egyptian authorities insurance companies are responsible for paying compensations for affected ships and not Egypt
· They point out that according to the Convention of Constantinople, which was signed in 1888 regarding the freedom of navigation in the Suez Canal, does not force Egypt to pay any financial compensation.
As the uncertainty about the tilted ships MV EVERGREEN continues to haunt the global movement of merchandise trade, Egypt has made it clear that it is not obliged to pay compensations for ships delayed in the Suez Canal. According to Egyptian authorities insurance companies are responsible for paying compensations for affected ships and not Egypt.
They point out that according to the Convention of Constantinople, which was signed in 1888 regarding the freedom of navigation in the Suez Canal, does not force Egypt to pay any financial compensation.
It is a treaty signed by the United Kingdom, Germany, Austria-Hungary, Spain, France, Italy, the Netherlands, the Russian Empire and the Ottoman Empire in October 1888 for regulating the use of the Suez Canal. These agreements (conventions) do not cast responsibilities on the Canal authorities to pay compensations. Also, there were similar cases earlier of suspension of services in the Canal, where the authorities were not called to pay damages (compensation) to the shipping lines.
However, there are shipping experts who hold the view that the entire things should be examined on its merits, while the authorities put the blame on bad weather. There were reports that during the day it had happened, there was heavy storm and rain in the area surrounding the Canal. If there were any fault lines in the maintenance like dredging, other type of upkeep etc. there may be assertions from the shipping lines for claims from the Canal authority. They also maintain that if the fault lines are with the grounded ship-Evergreen- it is difficult for the shipping company to extricate it from the legal wrangles that would cast on it. Admittedly, there was news floated that the Canal authorities were mulling to give compensations to stranded ships, which was scotched by the authorities.
The work to bring back normalcy in the Canal is going in full swing. Two dredges are deployed to clear the accumulated silt and 10 tugboats are at work to straighten up the ship. As reported by www.trendsnafrica.com, sailing in the Suez Canal was temporarily suspended. However, thirteen ships were allowed to cross within “the Caravan of the North” heading from the Mediterranean to the Red Sea.
