Unity In Community 16/4 Logistics Update

April 16, 2021


As highlighted in our bulletin this week, the Suez blockage has led the Asia/European ocean market into a very challenging period.

Extreme equipment shortages, reduced capacity, blanked sailings and congested European arrivals means further delays, major space issues and that rates are due to rise again.


Various reports this week, and a statement from carrier Evergreen, have confirmed that the Ever Given, which was previously blocking the Suez Canal, has been seized pending payment of $916m of costs – in accordance with a ruling by Egyptian courts.

The costs supposedly include $300m for a ‘salvage bonus’ and $300m for a ‘loss of reputation’ for the Egyptians, which is naturally being disputed.

On 1st April, the ship owners declared ‘General Average’ on the vessel. This is a unique legal principle of maritime law that requires all ‘cargo owners’, with products on the vessel, to contribute to the costs of any losses. Therefore, there are $916m of disputed costs that could theoretically be divided amongst importers and exporters.

General Average declarations are rare, but many businesses are unaware of the full liabilities that come with moving goods internationally, most of which can be covered by the relatively small cost of cargo insurance (see below).


With the above in mind, Atlantic Pacific urge all customers to check that they have full cargo insurance in place and that their policies cover ‘general average’.

In our experience, many reputable businesses make the assumption they ARE covered and then discover they ARE NOT.

If you would like us to help with your check, or would like to get a quote for cargo insurance, then please do not hesitate to contact a member of our team.

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