Report: Evergreen May Ever Given's Cargo Offload

As the Suez Canal Authority negotiations with the owners, carriers and insurers of Ever Given continue, Evergreen Charterers are contemplating other ways of discharging the cargo to continuous transport.

Since she was removed from the southern tip of the Suez Canal on 29 March Ever Given was stuck on Great Bitter Lake for inspections and legal maneuvers. On 13 April, the Suez Canal Authority obtained an order from the court to seize Ever Given following unsuccessful negotiations with owner Shoei Kisen Kaisha. The Authority made its commitment to retain the vessel before a claim of approximately US € 1 billion is paid. (The exact figure is $916 million, according to the court.)

The magnitude of the demand, as well as the seizure, is unusual. If the victim is known, the insurer or owners normally send a bond in exchange for the ship's permission to continue its trade trip with local authorities. The parties concerned then negotiate financial compensation without further interference with the crew or cargo interests.

Evergreen said the SCA's request is unjustified by noting a rare request for "loss of reputation" of $300 million and a further $300 million for a "salvage bonus." Independent observers suggest that measurable damage to SCA is probably less than $200 million in lost income and salvage costs.

According to a person familiar with the situation, Evergreen is now considering "moving the containers to other ships and delivering them to the clients in Europe." This could entail chartering empty vessels for special-purpose voyages to pick up the cargo or purchasing empty slots on other container ships sailing to Europe. Ever Given should lie in a terminal with large sufficient STS cranes to handle its extra-large extra-wide stacks.

"The seizure of the Ever Given, as well as Egypt's canal authority's demand for compensation for salvage and other expenses, adds to the complexity and cost for the numerous cargo owners whose property is in transit aboard the vessel. Unless a settlement is reached, those cargo owners will face additional costs and delays while the vessel remains imprisoned "Seward & Kissel attorneys Bruce Paulsen and Brian Maloney commented.