The M/V Ever Given's six-day grounding in the Suez Canal caused havoc throughout the marine industry. Particularly, the abrupt shutdown of the canal caused hundreds of vessels to be delayed, which greatly increased the cost of necessities. The Egyptian government detained the ship, and $916 million was demanded as payment for the damages.

This essay discusses the vessel's description as well as the history of the Suez Canal. First, the incident's chronicle will be spoken about. This essay primarily looks at the parties' obligations as well as any potential harm to them. This essay reveals how the catastrophe has affected the marine industry as a whole.
 
Introduction
Maritime transportation is essential to the world economy and trade. Nearly 90% of global trade is handled by the maritime sector, according to the International Chamber of maritime. Not only do natural bodies of water facilitate maritime traffic, but man-made manmade canals also play a significant role in global trade.

The decrease in both distance and operating expenses has made these man-built artificial canals a blessing. The main man-made canals the Grand Canal, the Panama Canal, the Suez Canal, and the Volga-Don Canal offer alternate routes that make maritime transportation more efficient.

History Of Suez Canal:

The Suez Canal was built to connect the Mediterranean and Red Seas during the reign of the Pharaohs of ancient Egypt. During Napoleon Bonaparte's reign in the late 1700s, the first attempt to build the canal was launched. Napoleon was duped in 1799 by a false report that claimed the sea levels in the Red Sea and Mediterranean Sea were different. Construction on the canal was immediately halted due to the potential for flooding.

The canal was once again attempted to be built in the middle of the 1800s. The French engineer and politician Ferdinand de Lesseps discovered that the sea levels of the Mediterranean and Red Seas are the same. He persuaded Said Pasha, the viceroy of Egypt, to back the canal's development.

The Universal Suez Ship Canal Company was established in 1858 and granted the authority to start building the canal. The canal's construction started on April 25, 1859, and it was officially opened on November 17, 1869. The Suez Canal Company needed ten years to finish it. The State Authority of the Suez Canal (SCA) in Egypt is in charge of running and maintaining the canal.

Description Of The Suez Canal And The M/V Ever Given Ship:

An artificial man-made canal called the Suez Canal links the Mediterranean and Red Seas, dividing Asia and Africa. It provides a direct path, saving 5,500 nautical miles of trip time, between the North Atlantic and the Northern Indian Ocean by avoiding the hazardous Cape of Good Hope voyage.

The Canal is 205 meters broad, 24 kilometers deep, and 193.30 kilometers long. It permits a ship to pass through it with a maximum width of 77.5 m and a draft of 20.1 m. More than 18,500 ships, or 51.5 ships per day on average, passed through the canal in 2020. In 2016, the canal was extended to a distance of 22 miles.

One of the biggest ships in the world is thought to be the M/V Ever Given Ship. Evergreen Marine, a Taiwanese shipping business, is in charge of operating the ship. The ship is 399.94 meters (1,312 feet and two inches) long overall. The hull's depth is 32.9 meters (107 feet, 11 inches), and its beam is 58.8 meters (192 feet, 11 inches). Ever Given can carry 20,124 TEU of cargo and has a gross tonnage of 220,940. Under the Panamanian flag, the ship is run by Evergreen Marine, a Taiwanese maritime business.

Legal Aspects:
The two primary legal frameworks that oversee the shipping industry are maritime law and law of sea. While the latter legislation pertains to domestic shipping laws, the earlier statute is applicable worldwide. These laws are essential in helping the parties settle any future legal problems.

A legally required framework known as a contract of affreightment is an arrangement between the shipowner and the cargo owner that permits the transportation of commodities by sea. These agreements come in a variety of forms, the most popular of which are charter parties and bills of lading. A charter party is a written contract that permits the charterer and the ship owner to utilize the entire or a portion of the vessel for the transportation of cargo. An agreement between the shipper and the carrier that contains information on the products to be carried, such as the kind, destination, and amount, is called a bill of lading.

The Hague-Visby rules provide the international guidelines for the maritime movement of commodities. It lays down the carriers' minimal obligations, liabilities, rights, and privileges. The freedom of contract concept also permits the parties to negotiate further stipulations. In the normal course of business, the terms are expressed in writing. The Hague Visby rules' minimal liability might be invalidated by such a clause.

For instance, if the bill of lading contained the Hague Visby norms, which state that the ship shall not deviate from the course. The parties may, however, agree that if the vessel is about to get stranded, he will not be held accountable for deviating from the intended path. In such a case, the parties' stipulations will take precedence over the Hague Visby Rules.

Only ships that abide by the laws and regulations established by the Egyptian government, as well as those outlined in SOLAS, MARPOL International Regulations, and International Regulations for the Prevention of Collisions at Sea (COLREGS), are permitted to transit through the Suez Canal Authority. Put simply, in order to navigate the canal, the shipowner and master must adhere to all regulations set forth by the authorities.

Article 6 of the Suez Canal navigation rules stipulates that all vessels, regardless of size, must use pilotage when entering, exiting, moving, changing berths, or shifting in Canal waters or Port Said and Suez ports. The Suez Canal Authority must expressly approve any exception.

According to Article 4, unless it can be demonstrated that the damages were not inflicted on purpose, by mistake, or through carelessness, the master, the ship's owner, and the charterer are all responsible for any accidents or damage that occur during the Suez passage. From now on, a navigator is required to enter the canal with a master-signed document that serves only as an advising function.

The Suez Canal Authority mandates that all ships passing through the canal have a pilot aboard. The master, who signs and enters before the canal, bears full responsibility for any mishaps that occur; the pilot just serves as an adviser. If a vessel does not follow the laws and regulations, the Suez Canal Authority has the authority to prohibit the vessel's entry at the canal's commencement.

The Chronicle Of The Accident:

On 23rd March 2021, the M/V Ever Given was sailing from Tanjung Pelepas, Malaysia to Rotterdam, the Netherlands via Suez Canal. At around 7:40 am local time, the ship was approached the southern end of the Suez Canal. As it was navigating through the canal, powerful winds were blowing that exceeds 40 knots reducing the visibility.

Considering the climatic conditions as well as the volume of the ship, the vessel was deviated from the waterway and it ended up with its bow wedged in one bank of the canal and the stem nearly touching the other, interrupting traffic from both the directions.

On 29th March 2021, the M/V Ever Given was freed and it sailed towards the Great Bitter Lake in Egypt for technical inspection. The Egyptian authorities seized the vessel on request of the SCA, where they were seeking for compensation.

On 13th April 2021, the Suez Canal Authority officially seized the vessel on court orders. They were seeking compensation of $916 million including $300 million for the ship's detachment and $300 million for "reputation damage".

On 7th July 2021 Egypt released the vessel following an agreement made between the authorities and the ship-owing company for compensation. The vessel was departed from the Suez after 106 days from the incident.

On 29th July 29021 the vessel finally docked to its original destination Rotterdam in Netherlands.

The Causes For Grounding:

To find out the reasons for grounding of the vessel few important factors will have to be considered and analyzed like the testimonies of the pilots, the captain and the crew, at the sandstorm which occurred at the time of the incident.

It was observed there was a sandstorm that winds up to 70 knots, the wind were denser than the usual and it contained many soil particles and dust. These climatic conditions combined with the substantial volume of the vessel made the steering difficult. Another factor to be considered is the speed of the vessel. The SCA have accused the caption of speeding of the vessel. It was also found out that the ship's speed was increased compared to the usual vessel speed. Finally the enormous size of the vessel was also one of the reasons for grounding.

If all the three factors are taken into account, it can be concluded that the vessel's grounding is inevitable. The main cause for accident was the strong wind which aggravated the density of the air resulting in the loss of control of the vessel. Therefore the only way to avoid accident was to predict the wind speed and prohibit the ships entering the canal if there was a risk of sandstorm. As per the rules for navigation in the Suez Canal, the master of the vessel has an obligation to intervene if he saw something wrong with the ship or dangerous weather conditions. However the accident could have been prevented if proper preventive measures were installed.

Impact:
The suspension of the M/V Ever Given caused disruptions to the world's supply systems. The effect on the world supply persisted for several months. Along with the effects on international trade, it also had an influence on insurance, legal matters, and logistical operations involving a variety of parties, including carriers, shippers, terminal operators, charter parties, and insurers.

The COVID-19 epidemic that broke out before to the catastrophe had a major negative impact on the marine sector worldwide. Since the viral breakout, shipping has increased in cost. The issue involving the Suez Canal had increased strain on international trade. The obstruction causes a significant backlog of more than 370 ships at the size canal. The bottleneck has resulted in an hourly delivery delay of items valued at $400 million. It has been claimed that the vessel has lost almost $54 billion in commerce since it has been detained for more than six days. In addition, there was a scarcity of basic goods like gas and oil, which drove up their prices.

The insurance industry reportedly lost $31 billion as a result of the insurers' liability to reimburse the victims, according to Fitch Ratings. Businesses and legal teams brought cases before the court pertaining to cargo interests, with a primary focus on the interruption and delay brought on by the Ever Given. Based on the incurred additional expenses, damages, and economic loss, a claim for compensation was made.

Potential Claims And Losses:

Both direct and indirect losses to third parties are the responsibility of the ship owner. The Ever Given owner's insurer is the UK P&I Club. Together with the penalties levied by the Suez Canal Authorities, the insurance must also pay damages for harm done to the authorities and the Suez Canal, including lost income and damage. In addition, it has responsibility for compensating the affected enterprises and other canal users who have experienced disruptions to their business operations, loss of market share, and cargo damage.

However, because they are the vessel's renter and operator, the M/V Ever Given is accountable for all the cargo on board. The vessel is insured against charterer liability; repayment is the responsibility of the vessel's insurer, TT Club. This includes all of the fuels and containers on board. The patterns have the right to demand it based on the contractual liability. There will be a lack of kindness inside The Ever Given itself.

The Suez Canal Authority was given a warrant to seize the vessel on April 13, 2021, after the court ruled that it had been awarded $916 million in damages during the infestation of the vessel. The ship will be detained by the Suez Canal Authority until $1 million in damages are paid, the authority said. The operations of the Ever Given were overseen by its technical manager, Bernhard Schutle Ship Management. It was its responsibility to guarantee that the crew operated the vessel at all times without failing. The operator may sue the Bernhard Schutle Ship management for damages if any crew members were at fault. Should he have procured professional indemnity insurance, the insurer would provide compensation.

The M/V Ever Given grounded, leaving around 400 ships stranded. All of these stranded vessels are entitled to legal action against the vessel or the Suez Canal, whichever is at fault. It is important to remember, though, that the stranded ships were already waiting for their turn at the time of the disaster. The ships that came after the tragedy and the potential for another route make the Suez Canal an artificial passageway, thus it would be unreasonable for them to demand compensation. The ships that were waiting to pass through the canal prior to the event were limited to receiving payment for their goods.

Last but not least, given the complexity of this situation, the guilty party would not be able to pay a high compensation demand. The owners of the cargo or the charterer will not be obliged to pay the compensation since the stranded boats had an alternative route, even if the reason of the vessel blockage was not a force majeure occurrence.

Judicial Decision On Similar Incidents:

There was a collision event in the Suez Canal on July 15, 2018, in the evening. The convoy leader, M/V Aeneas, was forced to stop in the canal due to an engine problem. M/V Sakizaya Kalon and M/V Panamax Alexander collided during the mooring procedure. These two boats later ran into M/V Osios David in a collision. Who is legally responsible for the collision is at issue here.

The court ruled on October 5, 2020, that the M/V Panamax Alexander's inability to detect the collision danger and to promptly lower its anchors caused the two boats to collide.As a result, M/V Panamax Alexander was found accountable and liable for the two vessels' accident. It was not possible for the ships M/V Sakizaya Kalon and M/V Osios David to escape the incident. They are thus not blamed for the crash.

On October 5, 2020, the court rendered a decision declaring that the two boats collided due to the M/V Panamax Alexander's failure to recognize the potential for collision and to quickly drop its anchors.M/V Panamax Alexander was thus held responsible and liable for the mishap involving the two boats. The ships M/V Sakizaya Kalon and M/V Osios David were unable to flee the situation. That means they are not to responsible for the collision.

Suggestions - Steps To Prevent Further Blockage:
There were more similar occurrences between 2018 and 2020. The Suez Canal should be developed further, according to the Egyptian government. It becomes difficult for large ships to navigate the canal because it is not broad enough. Before allowing the vessel to travel through the canal, it should also examine the vessel's length, breadth, height, weight, and speed.

Engineers should be dispatched by the vessel's owner and operator to conduct routine inspections and comprehensive checks of the ship before it sets sail. The boats must make sure that their insurances are adequately covered in order to shield themselves against lawsuits.

Conclusion:
As previously stated, the legal cause and effects of the M/V Ever Given Ship's grounding in the Suez Canal have been examined in this study. We may conclude from the analyses in this study that the disruption of the global supply chain caused by the vessel's grounding is quite visible. The items' price and demand have skyrocketed as a result of this disturbance. The global trade has suffered greatly as a result of this one incidence.

Both the government and the businesses should take preventative measures and move fast to remedy the issue in order to avoid such tragedies in the future. Events like as this are unavoidable, and corporations have to utilize alternate chokepoints, such as the Panama Canal and northern sea routes, in addition to increasing awareness.

References:

• Egypt launches Suez Canal expansion - BBC News
• Black's Law Dictionary - Free Online Legal Dictionary: thelawdictionary.org
• Hague Visby Rules Law and Legal Definition | USLegal, Inc.
• Suezcanal.gov.eg/FlipPDFDocuments/Rules of Navigation.pdf
• Forti, N., d'Afflisio, E., Braca, P., L.M., Willett, P. & Carniel, S., Maritime anomaly detection in a real-world scenario: Ever Given groundings in the Suez Canal.
• Clark, A., Stapczynski, S. & Shiryaevskaya, A., The $9.6 billion a price of a Suez struck ship: https://gcaptain.com/the-9-6-billion-a-price-of-a-suez-stuck-ship/
• Lebedev, A.O., Lebedeva, M.P. & Butsanets, A.A., Could the accident of "Ever Given" have been avoided in the Suez Canal? Journal of Physics: Conference Series, 2061(1)
• Das, K. (2021, March 30), Explained: How much did Suez Canal blockage cost world trade - India Today: https://www.indiatoday.in/business/story/explained-how-much-did-suez-canal-blockage-cost-world-trade-1785062-2021-03-30
• Suez Canal Blockage a Large loss Event for Global Reinsurers (2021, March 29) Fitch Ratings: https://www.fitchratings.com/research/insurance/suez-canal-blockage-loss-event-for-global-reinsurers-29-03-2021
• Dzhanova, Y. (2021, March 29). The Suez Canal has a contentious history and has been blocked and closed several times since opening. Insider: http://www.businessinsider.com

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