A STUDY ON SUEZ CANAL

BLOCKAGE

A COMPREHENSION REPORT
Submitted by

SRIDHAR C - 623018114063

In partial fulfilment of the award of the degree

Of

BACHELOR OF ENGINEERING
IN
MECHANICAL ENGINEERING

TAGORE INSTITUTE OF ENGINEERING AND TECHNOLOGY

DEVIYAKURICHI – 636 112

ANNA UNIVERSITY: CHENNAI 600 025

NOV/DEC 2021

1
 ANNA UNIVERSITY: CHENNAI 600 025

BONAFIDE CERTIFICATE

Certified that this comprehension report “A STUDY ON SUEZ CANAL

BLOCKAGE” is the Bonafide work of “SRIDHAR C” who carried out the
comprehension work under my supervision.

SIGNATURE SIGNATURE

Dr. J. SIVAKUMAR, M.E., Ph.D., Mr. D. VIKARAM, M.E.,

HEAD OF THE DEPARTMENT SUPERVISOR

ASSISTANT PROFESSOR, ASSISTANT PROFESSOR,

Department of Mechanical Department of Mechanical

Engineering. Engineering.

Tagore Institute of Engineering and Tagore Institute of Engineering

and Technology. Technology.

Submitted for comprehension report viva voice held on________________

INTERNAL EXAMINER EXTERNAL EXAMINER

2
 DECLARATION
I am SRIDHAR C-623018114063

I declare that the comprehension study on “A STUDY ON SUEZ CANAL

BLOCKAGE” is done by me and the best of my knowledge. This
comprehension study is submitted for partial fulfilment of the requirement for
the Degree of Bachelor of Engineering (B.E) in Mechanical Engineering for
the Anna University in Chennai.

NAME : SRIDHAR C

SIGNATURE:

DATE :

PLACE : DEVIYAKURICHI

ACKNOWLEDGEMENT

At the pleasing moment of having successfully completed our

comprehension, we wish convey our sincere thanks and gratitude to the
MANAGEMENT MEMBERS of our college who provide all facilities to us.

I would like to express our sincere thanks to honorable Principal

Dr.S.JAYANTHI, M.E.,Ph.D., for forwarding us to do our comprehension
report and offering adequate duration in completing our comprehension.

I also Express our sincere thanks to the Head of the Department

3
Dr.J.SIVAKUMAR, M.E., Ph.D., Assistant Professor of Mechanical
Engineering for continues encourage and support to complete the
comprehension work successfully.

I would like to express my sincere thanks to our beloved comprehension

Coordinator Mr.D.VIKRAM, M.E., Assistant professor of Mechanical
Engineering Department to give the opportunities to complete this
comprehension.

I also express our gratefulness to our Department Staff members,

Technical Staff, Parents and Friends for their affectionate blessing and
loving cooperation at all stages of this academic venture.

ABSTRACT

Global supply chain currently thrown into chaos due to the Suez Canal
incident This paper aims to reveal the potential damage caused to parties
involved and examine the liability of parties involved. Specifically, the impact
and legal consequences of the obstruction such as how the scope of general
average applies as well as the possible solutions to minimize damage are
discussed, followed by future developments. These results suggested that
maritime transport support global supply chain linkages and economic growth,
any disruption could bring huge impact and costs on various stakeholders
along the supply chain.

4
 TABLE OF CONTENT
CHAPTER NO TITLE PAGE NO

1 INTRODUCTION 7
2 CANAL 9
3 SUEZ CANAL 13
4 CARGO SHIP 16
5 EVER GREEN 20
6 CONCLUSION 26
7 REFERENCES 27

5
 CHAPTER 1
INTRODUCTION

Mode of transport is a term used to distinguish between different ways of

transportation or transporting people or goods. The different modes of
transport are air, water, and land transport, which includes Rails or railways,
road and off-road transport. Other modes also exist, including pipelines, cable
transport, and space transport. Human-powered transport and animal-powered
transport are sometimes regarded as their own mode, but never fall into the
other categories. In general, transportation is used for moving of people,
animals, and other goods from one place to another. Means of transport, on the
other hand, refers to the transport facilities used to carry people or cargo
7according to the chosen mode (animal, vehicle, car, airplane, ship, truck, train
and so on and so forth). Each mode of transport has a fundamentally different
technological solution, and some require a separate environment

1.1 TYPES OF TRANSFORT

Railways

Indian railway system has grown into Asia’s largest and the world’s fourth
largest. It has route length of 72,000 kilo meters by the end of 1990. The daily
run is 15,000 kilo meters with running of 12,000 trains carrying 7 lakh tons of
goods. The average cost per ton kilo meter is 27 paise.

Roadways

Indian road network is one of the largest in the world. It has a total road
length of 18 lakh kilo meters of which 50 percent is surfaced. Of this, national
highways account for 35,000 kilometers account for the 50 percent of total
traffic. On this road length, 9 lakh vehicles ply carrying goods.

6
Airways

We cannot boast of airways in India as we do in case of railways and

roadways because, it is underdeveloped and underutilized. It acts as a feeder or
supporting transport means. Domestic capacity available is 115 lakh ton kilo
meters but utilized only to the extent of 12 lakh ton kilometers in
1990.qInternational capacity corresponds to 218 lakh ton-kilo meters of which
175 lakh ton-kilo meters are used. India has 4 international airports, 92
aerodromes with 50 intermediate and 40 minor aerodromes.

Waterways

Waterways of the nation provide other alternative means of transport.

Unfortunately, in India, waterways are not fully developed though she has a
great potentiality. Though India has 7,000 kilo meters of navigable river
waterways, only 2,500 kilometers are used. Again, we have 4,800 kilometers
of canals of only 600 kilometers are navigable but hardly 400 kilo meters are
actually used. Since 1947, India has made great progress in shipping and
gradually became the second largest shipping country in Asia and sixth largest
in the world. Indian ships ply on most of the shipping route of the world. India
has a longer coastline of 6100 km long and have only 11 major ports. They are
Mumbai, Kandla, Marmagaon, New Mangalore, Kochi on the west coast and
Kolkata, Chennai, Haldia, Pradeep, Vishakhapatnam and Tuticorin on the east
coast. Jawaharlal Nehru port of Mumbai has been developed as one of the
major ports. It is the only fully mechanized port of India. The biggest port is
Mumbai which handles largest number of ships as well as trade. Kandla port
in Gujarat compensates the loss of Karachi Port (Pakistan). Vishakhapatnam is
the third largest port of India. Kolkata is the largest inland port of Asia.

CHAPTER 2

7
 CANAL
A canal is a human-made waterway that allows boats and ships to pass from
one body of water to another. Canals are also used to transport water for
irrigation and other human uses. While the advent of more efficient forms of 5.1
2021 Suez Canal grounding 15transportation has reduced the need for canals, they still
play a vital role as conduits for transportation and fostering global commerce.
There are two types of canals: waterways and aqueducts. Waterways are the
navigable parts of a body of water, and can be located within a bay or open
sea, can connect two or more waterbodies, or may even form networks within
a city. Aqueducts are used exclusively to transport water for drinking,
agriculture, and hydroelectric power. The word “canal” derives from the Old
French word channel, which means “channel.” The oldest known canals are
aqueducts built in Mesopotamia thousands of years ago. Since then, canals
have played an important role in connecting cultures and facilitating
commerce.

2.1 TYPES OF CANALS

1. Beijing-Hangzhou Grand Canal

Popularly known as Grand Canal, the Beijing–Hangzhou Grand Canal is

the longest and the oldest canal in the world. Connecting China’s, the Yellow
River and Yangtze River, the canal goes through several provinces in the
country as well as connects with several other rivers. While the canal covers a
length of 1,776 km (1,104 mi), its greatest height reaches at a summit of 42 m
in the mountains of Shandong. Linking the northern and southern China, the
canal contributes heavily to the country’s economy as it holds a great role in
the transportation of cargo. Originally built in 468 BC, the Grand Canal is
currently a UNESCO World Heritage Site.

8
2.Suez Canal

Opened in November 1869, the 193.30 km (120 miles)-long Suez Canal is

an artificial sea-level waterway located in Egypt. Linking the Mediterranean
Sea with the Gulf of Suez, the Suez Canal is an extremely crucial shipping
canal in the world maritime sector as it is one of the most heavily used
shipping routes in the world. The canal, which separates Asia from the African
continent, provides a shortest maritime route between Europe and the regions
which share a border with the Indian Ocean and the Western Pacific Ocean.
The Suez Canal has been recognized as a maritime route to be open at all
times, to shipping vessels of all countries in order to facilitate continuity in
maritime trade operations irrespective of global conflicts.

3.Panama Canal

One of the most crucial maritime gateways in the western region, the
Panama Canal provides connectivity between the Pacific and the Atlantic
Ocean through the Panama isthmus- a narrow strip that separates the
Caribbean Sea from the Pacific Ocean. Since the oceans that the canal
connects with are not at the same level, the canal uses Lock Gates on either
side to lift the vessel to the higher level and similarly to drop down to the sea
level. Opened in the year 1914, the canal helps vessels transiting between the
east and west coasts of the US to shorten their journey by 15,000 km. The 82
km (51 mi)-long waterway offers its service to 29 major liner services, mostly
on the US East Coast to Asia trade route. In 2017, the Panama Canal
witnessed the arrival of a total of 13,548 vessels and received 403.8 million
tons of cargo.

4.Corinth Canal

Connecting the Gulf of Corinth and the Saronic Gulf in the Aegean Sea,
the Corinth Canal goes through the narrow Isthmus of Corinth and divides the
9
Peloponnese from the Greek mainland. With the 6.4-kilometre length and 8
meters (26 ft) depth, the Corinth Canal is considered to be the deepest canal in
the world. The canal holds its importance as it helps seafarers avoid the
dangers of sailing around the Peloponnese’s treacherous southern capes while
moving between the Gulf of Corinth and the Saronic Gulf. The white Sea-
Baltic Sea Canal the White Sea-Baltic Sea Canal, also called White Sea Canal,
is an important waterway that regularizes traffic internally along the Russian
waterways starting from the White Sea in the north and extending to the Baltic
Sea down south. Constructed in the year 1933, the shipping canal passes
through various smaller water bodies, including the Arctic Ocean and Lake
Onega, before finally emerging into the Baltic Sea. Although an important
navigation conduct, the 227 km-long canals, however, witnesses only light
traffic since it isn’t suitable for merchant ships vessels with larger dimensions
and specifications. It is estimated that a total of 193 million tons of cargo had
been transited through the canal over the first 75 years of its operation since
1993.

5.Rhine-Main-Danube Canal

Linking three important rivers in the heart of Western Europe, the

Rhine
Main-Danube Canal or the Europa Canal was originally built as early as the
1938s. The Europa Canal is a major marine transportation gateway linking the
North Sea to the Black Sea, via the Atlantic Ocean. Over the years there have
been several constructional extensions that have been made to the canal, the
last one being carried out in the early 1990s. An important shipping gateway
within Europe, the 171 kilometers (106 mi) long Rhine-Main-Danube Canal is
capable of accommodating barges with a capacity of up to 2,425 tons of bulk
cargo.

10
 6.Volga-Don Canal

The Volga-Don ship canal interlinks the Russian rivers Volga and Don,
providing an important water passage through the Azoff Sea (a bay of the
Black Sea) and the Caspian Sea to the major oceanic networks. The original
construction work on the canal, at the closest point of the rivers, was started as
early as the 16th century and the route was considered important because of the
fact that it provided a much passage to connect the Eastern European shipping
networks with their Western counterparts. Opened in 1952, the 101 km-long
waterway passes through three reservoirs including Karlovac, Breslavian, and
Varvara. The canal features nine one-chamber canal locks on the Volga slope
to raise ships and four locks on the Don slope to lower vessels.

7.Kiel Canal

Connecting the Baltic Sea with the North Sea, the Kiel Canal passes
through the German province of Schleswig-Holstein. Opened in 1895, the 98
khlong Kiel Canal helps vessels to bypass the longer route that passes via
Denmark (peninsula of Jutland), which is regarded as quite unstable maritime
route, saving an average of 250 nautical miles. With this artificial waterway,
vessels end route to east through the North Sea enter the canal at Busuttil and
complete the journey at Kiel-Helena to enter into the Baltic. The
constructional aspect of the water route dates back to the 1700s, though the
construction of the present-day Kiel water conduit began only during late
1887. More than 9,000 workers spent eight years to complete the construction
of the present-day canal

CHAPTER 3

11
 SUEZ CANAL
In 1858, Ferdinand de Lesseps formed the Suez Canal Company for the
express purpose of building the canal. Construction of the canal lasted from
1859 to 1869. The canal officially opened on 17 November 1869. It offers
vessels a direct route between the North Atlantic and northern Indian oceans
via the Mediterranean Sea and the Red Sea, avoiding the South Atlantic and
southern Indian oceans and reducing the journey distance from the Arabian
Sea to London by approximately 8,900 kilometers (5,500 mi), or 10 days at 20
knots (37 km/h; 23 mph) to 8 days at 24 knots (44 km/h; 28 mph). The canal
extends from the northern terminus of Port Said to the southern terminus of
Port Tewfik at the city of Suez. Its length is 193.30 km (120.11 mi) including
its northern and southern access-channels. In 2020, more than 18,500 vessels
traversed the canal (an average of 51.5 per day). The original canal featured a
single-lane waterway with passing locations in the Ballah Bypass and the
Great Bitter Lake.
It contained, according to Alois Negrelli’s plans, no lock systems, with
seawater flowing freely through it. In general, the water in the canal north of
the Bitter Lakes flows north in winter and south in summer. South of the lakes,
the current changes with the tide at Suez. While the canal was the property of
the Egyptian government, European shareholders, mostly British and French,
owned the concessionary company which operated it until July 1956, when
President Gamal Abdel Nasser nationalized it—an event which led to the Suez
Crisis of October–November 1956. The canal is operated and maintained by
the stateowned Suez Canal Authority (SCA) of Egypt. Under the Convention
of
Constantinople, it may be used “in time of war as in time of peace, by every
vessel of commerce or of war, without distinction of flag. Nevertheless, the
canal has played an important military strategic role as a naval short-cut and

12
choke point. Navies with coastlines and bases on both the Mediterranean Sea
and the Red Sea (Egypt and Israel) have a particular interest in the Suez Canal.
After Egypt closed the Suez Canal at the beginning of the Six-Day War on 5
June 1967, the canal remained closed for precisely eight years, reopening on 5
June 1975.The Egyptian government launched construction in 2014 to expand
and widen the Ballah Bypass for 35 km (22 mi) to speed up the canal’s
transittime. The expansion intended to nearly double the capacity of the Suez
Canal, from 49 to 97 ships per day. At a cost of 59.4 billion Egyptian pounds
(US$9bn), this project was funded with interest-bearing investment certificates
issued exclusively to Egyptian entities and individuals. The “New Suez
Canal”, as the expansion was dubbed, was opened in a ceremony on 6 August
2015.The Suez Canal Authority officially opened the new side channel in
2016. This side channel, located at the northern side of the east extension of
the Suez Canal, serves the East Terminal for berthing and unberthing vessels
from the terminal. As the East Container Terminal is located on the Canal
itself, before the construction of the new side channel it was not possible to
berth or unberth vessels at the terminal while a convoy was running.
3.1 SUEZ CANAL BLOCKAGE

In March 2021, the Suez Canal was blocked for six days after the
grounding of Ever Given, a 20,000 TEU container ship. The 400-metre-long
(1,300 ft) vessel was buffeted by strong winds on the morning of 23 March,
and ended up wedged across the waterway with its bow and stern stuck in the
canal banks, blocking all traffic until it could be freed. Egyptian authorities
said that “technical or human errors” may have also been involved. The
obstruction occurred south of the section of the canal that had two channels, so
there was no way for other ships to bypass Ever Given. The Suez Canal
Authority (SCA) engaged Boskalis through its subsidiary Smit International to
manage marine salvage. On 28 March, at least 369 ships were queuing to

13
pass through the canal. This prevented an estimated US$9.6 billion worth of
trade. On 29 March, Ever Given was partially re-floated and moved by about
80 percent in the correct direction, although the bow remained stuck until the
ship was finally freed by Egyptian, Dutch, and Italian tugs at 15:05 EGY
(13:05 UTC) and started moving, under tow, towards the Great Bitter Lake,
for technical inspection. The canal was checked for damage, and after being
found to bed, the SCA allowed shipping to resume from 19:00 EGY (17:00
UTC) on 29 March. The vessel was subsequently impounded by the Egyptian
government on 13 April 2021 for refusing to pay compensations demanded by
the government, a claim deemed to be unjustified by the ship’s insurers. After
the incident, the Egyptian government announced that they will be widening
the narrower parts of the canal

14
 CHAPPTER 4

CARGO SHIP
A cargo ship or freighter is a merchant ship. that carries cargo, goods, and
materials from one port to another. Thousands of cargo carriers ply the world's
seas and oceans each year, handling the bulk of internal trade. Cargo ships are
usually specially designed for the task, often being equipped with cranes and
other mechanisms to load and unload, and come in all sizes. Today, they are
almost always built of welded steel, and with some exceptions generally have
a life expectancy of 25 to 30 years before being scrapped.

4.1 CARGO SHIP COMPANYS

1. A.P. Moller-Maersk – 4.1m TEU

A.P. Moller-Maersk is the world’s largest integrated shipping company with

a total capacity of 4.1m TEU. It operates a fleet of 708 vessels including 307
own container vessels and 401 chartered container vessels as of December
2019.The Danish company also plans to add 11 401m-long container ships
with 19,630 TEU capacity each to its fleet by 2021. The new ships will be the
largest container vessels in the Maersk fleet. Two 18,500 TEU Triple-E
vessels and seven Baltic feeder vessels will also join the Maersk fleet. The
company operates diverse business segments, including the ocean, logistics,
terminals and towage, manufacturing, and others. The company’s digital
container logistics platform Trade Lens serves 98 directly integrated ports and
terminals.

2. Mediterranean Shipping Company (MSC) – 3.8m TEU

Mediterranean Shipping Company’s (MSC) container ship fleet has a total

intake capacity of 3.8m TEU. The company operates a fleet of 560 cargo
vessels, carrying 21m TEUs annually. MSC has a network of 493 offices and
15
employs 70,000 people across 155 countries, while its fleet calls at more than
500 ports worldwide. The company operates a modern fleet comprising
Gulsan Class vessels, a new class of sustainable container ship, to minimize
the environmental impact. The vessel design offers the lowest carbon footprint
at
7.49gm of CO₂ emissions to move 1t of cargo to one nautical mail.
3. China Ocean Shipping Company (COSCO) Shipping Lines – 3.1mTEU

China Ocean Shipping Company (COSCO) Shipping Lines, a fully owned

subsidiary of China’s state-owned shipping giant COSCO SHIPPING
Holding, operates 507 container vessels with a combined capacity of
approximately 3.1m
TEU.COSCO’s fleet serves 401 international and domestic shipping rots and
calls in 356 ports in 105 countries. The company operates a total of 235
corporate offices, including 97 domestic and 138 international offices.
COSCO SHIPPING Holding has stake in 59 terminals worldwide, including
51 container terminals. The annual throughput of its container terminals is
approximately
126.8m TEU, making it the world’s leading ports operator.

4. CMA CGM Group – 2.7m TEU

French container shipping company CMA CGM Group operates a fleet of

502 container vessels with a total capacity of 2.7m TEU.The company
inducted a 23,000 TEU container ship, CMA CGM JACQUES SAADE,
named after its founder, Jacques Saade, in September 2020. It is the first of
nine vessels ordered by the company. JACQUES SAADE is the largest LNG-
powered container ship in the world. MA CGM Group employs 110,000
people in 160 countries, and serves 420 commercial ports ensuring coverage to
more than 80% of the ports worldwide.

16
5. Hapag-Lloyd – 1.7m TEU

German container shipping line Hapag-Lloyd operates a fleet of 248

vessels with a combined capacity of approximately 1.7m TEU. The company
has a 7% market share of the total capacity of the global container ship fleet.
Hapag-Lloyd has ordered 77 container ships with a total of approximately
0.8m TEU transport capacity in 2019. The new vessels will be able to
transport various types of cargo such as oversized, and dangerous goods.
Headquartered in Hamburg, the shipping line employs more than 13,000
personnel, and operates 392 sales offices in 129 countries worldwide.

6. Ocean Network Express (ONE) – 1.5m TEU

Ocean Network Express (ONE) operates a fleet of 224 vessels with a

combined capacity of 1.5m TEU, making it the world’s sixth-largest container
carrier.ONE was established through the liner service integrations of Mitsui
O.S.K. Lines (MOL), Kawasaki Kisen Kaisha (K-Line), and Nippon Yusen
Kaisha (NYK) in July 2017.Headquartered in Singapore, the company
employs 8,000 people worldwide and offers more than 130 services each week
with coverage across 120 countries

7. Evergreen Line – 1.2m TEU

Evergreen Line is a group of container shipping companies comprising

Evergreen Marine Corp. (Taiwan), Italia Marittima, Evergreen Marine (UK),
Evergreen Marine (Hong Kong), and Evergreen Marine (Singapore). The
companies operate 333 vessels with a combined capacity of 1.2m TEU.
Evergreen has built and chartered 20 12,000 TEU F-type vessels to reduce fuel
consumption and greenhouse gas emissions. It ordered ten 23,000 TEU and
four 1,800 TEU container vessels in 2019.Evergreen Line employs more than
6,700 personnel and serves over 315 locations in Asia, America, Europe, the
Middle East, Australia, and Africa.
17
8. Orient Overseas Container Line – 733,580 TEU

OOCL is a Hong Kong-based integrated shipping company, specialized in

refrigerated cargo. The OOCL fleet includes 104 vessels with a combined
capacity of 733,520 TEU as of December 2019.The average size of the OOCL
fleet was 8,915 TEU, while the average age of its vessels was 9.77 years as of
December 2019.The company had not ordered new ships in 2019. However, it
placed an order for five 23,000 TEU container ships in March 2020, which are
expected to be delivered by 2023.OOCL is a fully integrated logistics and
containerized transportation services provider with operations across Asia,
Europe, the Americas, Africa, and Australasia.

9. HMM – 728,416 TEU

HMM operates a fleet of 110 container vessels with a combined

capacity of 728,416 TEU. It is the biggest Korean national container carrier.
The company has three container terminals. The company is inducting a
modern fleet of 12 24,000 TEU and eight 16,000 TEU container vessels
equipped with the latest smart ship solutions. Delivered between April and
September 2020, the 24,000 TEU vessels are the largest container ships in the
world. The 16,000 TEU vessels will enter service in 2021.Headquartered in
Seoul, South Korea, HMM is a global shipping and logistics company with
more than 60 sea routes and 100 ports. It is one of the top five carriers
operational in the trans-Pacific trade route.

10. Yang Ming Marine Transport Corporation (Yang Ming) – 616,000 TEU

The company started fleet optimization by the addition of 14 11,000 TEU

chartered vessels and 10 2,800 TEU self-owned newly built vessels in 2020.
The new fleet with improved engine efficiency will improve the
competitiveness of the company in the long-term. Yang Ming provides
container transportation and bulk transportation services as well as terminal
18
and logistics services. It offers scheduled container transportation services
across Asia, Europe, America, and Australia.

CHAPTER 5

EVER GREEN

Ever Given (IMO 9811000) Was laid down on 25 December 2015, launched
9 May 2018, and completed 25 September 2018, replacing an earlier ship of
the same name (IMO 8320901). Registered in Panama, she is owned by Shoei
Kisen Kaisha, a Japanese firm. Leased to the Taiwan-based container shipping
company Evergreen Marine for operation, she was managed by Bernhard
Schulte Shipmanagement at the time of the incident. All crew were Indian
nationals and none were injured in the incident. The ship's owners, Shoei
Kisen Kaisha, have liability coverage for $3.1 billion. Evergreen's Protection
and Indemnity (third party) liabilities insurance coverage is provided by
mutual UK P&I Club. The ship is insured in the Japanese market. Insurance
industry sources say the ship's owners could be facing insurance claims for
loss of revenue from the Suez Canal Authority (SCA) and from other ships
whose passage has been impeded. Container ships of this size are typically
insured for hull and machinery damage to an amount totaling between $100
and $140

5.1 2021 Suez Canal grounding

Satellite image of Ever Given blocking the Suez Canal At 07:40 Eastern
European Time (UTC+02:00) On 23 March 2021, the ship was passing through
the Suez Canal on its way to Rotterdam from Tanjung Pelepas when it became
stuck (coordinates 30.01761°N 32.58018°E) Near the village of Manshi yet
Rugolo and blocked the canal. According to a statement by the Suez Canal
Authority (SCA), the ship ran aground diagonally after losing the ability to steer
19
amid high winds and a dust storm. In a separate statement, Evergreen Marine
said that it had been told the ship "Was suspected of being hit by a sudden
strong wind, causing the hull to deviate from [the] waterway and accidentally
hit the bottom".

The ship ended up with its bow wedged in one bank of the canal and stern nearly
touching the other.

Tugboats trying to free the jammed ship, as viewed from the International
Space Station, 27 March 2021The ship had been running fifth in a northbound
convoy, with fifteen vessels behind it when it ran aground. Traffic in both
directions was blocked for just over six days, leading to a traffic jam of over
two hundred vessels. On 24 March, Bernhard Schulte Shipmanagement
(BSM), the technical manager of the ship, denied earlier reports that it had
been partially reflated. In addition, trade experts were worried about a supply
chain delay, and tension due to the delay for the ships trapped as well as other
vessels that planned to cross the Suez. Eight tugboats worked to re-float the
vessel in collaboration with a Komatsu excavator removing sand from the side
of the canal where the bow of the vessel was wedged. After an overnight
break, the salvage work resumed in the morning of 25 March. Egyptian
meteorologists reported that high winds and a sandstorm had affected the area
on the day of the grounding, with winds gusting as much as 50 kilometers per
hour (31 mph). Addressing a press conference on 27 March, Admiral Osama
Rabie, chairman of the SCA, said that weather conditions were "not the main
reasons" for the ship's grounding, adding, "There may have been technical or
20
human errors ... All of these factors will become apparent in the investigation.
Aided by high spring tide, the ship was partially freed from sediment and re-
floated on 29 March 2021 at 05:42
EGY (03:42
UTC), apart from the bow, which was still caught. The ship was finally freed
in the afternoon at 15:05 EGY (13:05 UTC), and the ship started moving
under tow towards the Great Bitter Lake for technical inspection, the first step
towards reopening the canal, planned for later that day. After the canal had
been checked for damage, the SCA informed shipping agencies that shipping
was to resume
From.

5.2 2021 Suez Canal obstruction

Date 23–29 March 2021

Time 07:40 EGY (05:40 UTC)

Duration 6 days and 7 hours

Location Suez Canal, Suez, Egypt

Coordinates 30.0175°N 32.5800°E

21
Type Ship grounding

5.3 Potential Claims and Losses

The shipowner is liable for the damage caused as well as damage caused to
third parties. The UK P&I Club is the insurer of the owner of Ever Given. The
insurance covers certain Third-party liabilities, Ship owning expenses and
expenses arising from operating ships. Considering the Incident, the P&I Club
has to pay damages for damage caused to the Suez Canal. Additionally, it
might need to recover the shipowner from the paid declared general Average
after the grounding of Ever Given. It is also liable to compensate victims (e.g.
Companies and other canal users) who suffer from cargo damage, loss of
market, business Interruption. It also has to compensate the loss of revenue of
the SCA and possible fine from the SCA. As a renter and operator of Ever
Given, EverGreen is responsible for all the goods on Board. Since it has the
Charterer’s Liability Insurance, its insurer, TT Club is responsible for
reimbursing the general average and salvage to all the partners involved with
EverGreen. This covers all containers and fuels on board. Whether the
partners could claim or not will Depend on the contractual liabilities. Besides,
EverGreen may have to deal with potential Consortium claims. Consequently,
evergreen itself will undergo loss of goodwill. During the investigation, there
is an ongoing negotiation between the SCA and the Owner, insurer and
operators of Ever Given. On 13 April 2021, the Court ruled that USD$916
million damages were to be awarded to the SCA and granted it a warrant to
seize. Ever Given following the unsuccessful negotiation between them. The
SCA Emphasized that it will hold up the ship until roughly USD$1 million
damages are paid. Meanwhile, the goods on board are stranded and cargo
owners are facing additional Expense, delay and customer complaints. Further
challenges are faced by the operator of Ever Given. It might need to unload the
18,000 goods-filled containers to other vessels. Maritime Law indicates that in
22
huge casualty events, cargo owners on board a ship Should contribute to the
rescuing cost. The 2018 fire on the Maersk Honam is an example Where the
cargo owners were subjected to pay off fixed sums amounting to 54% of cargo
Value in order to release their cargo [40]. Applying to this case, this means
that the container owners on board Ever Given may need to pay an additional
cost to have their Cargo released. Bernhard Schulte Shipmanagement, the
technical manager of Ever Given was in charge of its operation. It has the
obligation to ensure the crew handle Ever Given without Fault. In case that
investigation finds that that the crew was in fault, the operator will have the
right to claim damages from Bernhard Schulte Shipmanagement. Except if the
Bernhard Has purchased the professional Indemnity Insurance, it would be
settled by the insurer. Other affected charterers may want to seek indemnity
for cargo damage and late Delivery charge from the shipowner. Notably, in
place where Hague-Visby Rules apply, it Would be unsuccessful to claim for
pure economic loss.

5.5 Solutions

There is a history of disruption to the Suez Canal. In 2004, the Suez Canal
shut down for 3 Days due to an oil tanker ship, MT Tropic Brilliance got
lodged sideways. Another Disruption was found in 2007 where the OOCL
Japan vessel was stuck perpendicularly Causing the Suez Canal to be closed
for a few hours. More incidents were found in the Year of 2018 and 2020.
Learning from these unfortunate blips, parties could minimize the Damage by
considering the following. The above revealed that the Egypt Government is
compelled to consider \further Development of the Suez Canal. Considering
that the channel of the Suez Canal is not wide Enough for big ships to pass
through like the Ever Given, it might want to widen the Suez Canal channel.
The SCA should implement a set of contingency plans along with regular Man

23
oeuvre. It may interconnect with other countries in such events as well. It
should also Review ways vessels travel through the Suez Canal by
implementing maritime traffic Controls such as setting limits on vessel speed,
length, weight and height or number of Vessels pass through the canal at the
same time. As to the owner and operator of Ever Given, they should send
engineers to scrutinize the vessel regularly and before it sails in order to ensure
the vessel is good to go. To further Protect themselves from legal action, they
should ensure their insurances are well covered for such huge casualty events.
Since the Suez Canal incident revealed how fragile the channel between
Europe and Asia is and prompted international effort to discover alternative
maritime routes. It gives Charterers and containers users a good opportunity to
explore other routes or forms of Transportation as a backup plan. The use of
the North Sea Corridor could be an alternative Scheme. The “International
North-South Transport Corridor
(INSTC)” project has been Created by Russia, Iran and India since 2002.
Recently, the member states are planning to expand the seaway to a 7,200km
long route connecting Mumbai to Moscow. This Will accelerate trade
activities between Europe and Asia. It is likely to reduce travel times by 20
days and save at least 30 percent shipping costs compared to the Suez Canal.

24
 CHAPTER 6

CONCLUSION

Undoubtedly, the Suez Canal Incident has disrupted the global supply chain.
Exposed to Such disruption to the global supply chain and experienced in
surging prices on goods like Oil and gas due to the incident, it demonstrated
the need to review the way global trade is. Being conducted. In case such an
event reoccurs, contingency plans should be implemented Interstate. To
minimize loss, companies should take immediate action to resolve both short
Term and long-term issues. Companies may consider the use of other
chokepoints like the Panama Canal and Northern Sea Route. Evidently,
incidents like the Suez Canal are Unavoidable, companies should therefore
reflect upon the crisis and raise their awareness. For their future development.

CHAPTER 7

REFERENCES

1. Suez Canal, Egypt. (2021). Earth Watching. https://earth.esa.int/web/earth-

watching/image-of-the-week/content//article/suez-canal-egypt
2. BBC News. (2021, March 24). Egypt’s Suez Canal blocked by huge container
ship.
https://www.bbc.com/news/world-middle-east-56505413
3. Cecere, L. (2021, March 29). The Ever Given Is Moving But Your Supply
ChainWill Not. Forbes.
https://www.forbes.com/sites/loracecere/2021/03/29/the-ever-given-is-
movingbut-your-supply-chain-will-not/?sh=1cef5b92744f

25
4. BBC News. (2021, March 25). Suez Canal: Owner of cargo ship blocking
waterway apologizes.
https://www.bbc.com/news/world-middle-east-56522178
5. Gao, T., & Lu, J. (2019). The impacts of strait and canal blockages on the
transportation costs of the Chinese fleet in the shipping network. Maritime
Policy &Management,46(6),669–686.
https://doi.org/10.1080/03088839.2019.1594423
6. Duerr, G. M. E. (2021,March 30). Suez Canal Blockage: Ship Freed, Heavy
Traffic, International Impact. DigitalCommons@Cedarville
University.
https://digitalcommons.cedarville.edu/history_and_government_media_contri
bu tions/1231
7. LeBlanc, J. (2021). Suez Canal Blockage: Ripple Effect on Miami Valley
Supply Chain.
https://digitalcommons.cedarville.edu/business_administration_media_contribut
ions/120
8. Kickham, V. (2021, April 1). Supply chains brace for ripple effects of Suez
Canal blockage. DC Velocity. https://www.dcvelocity.com/articles/50093-
supply-chains-brace-for-rippleeffects-of-suez-canal-blockage
9. Week In China. (2016, November 1). What is Belt and Road?
https://www.weekinchina.com/chapter/belt-and-road/what-is-belt-and-road/ 10.
Belt and Road Initiative. (n.d.). Belt and Road Initiative. Retrieved May 3,
2021, from https://www.beltroad-initiative.com/belt-and-road/

26