Unity In Community 16/4 Logistics Update

April 16, 2021

CHALLENGING MARKET CONDITIONS FOR ASIA/EUROPE

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.

SUEZ VESSEL SEIZED PENDING $916 MILLION COSTS.

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).

CARGO INSURANCE

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.

Other News

Infamous Container Ship Due At Felixstowe

Infamous Container Ship Due At Felixstowe

Infamous Container Ship Due At Felixstowe     The infamous ‘Ever Given’, known around the world for blocking the Suez Canal for over a week, is finally due to arrive at Felixstowe today, over five months after it left Asia for Europe. The blockage in March...

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Covid Forces Chinese Flight Cancellations

Covid Forces Chinese Flight Cancellations

Covid Forces Chinese Flight Cancellations     Air freight from China is currently being impacted by a rise in covid cases, which has led to the cancellation of flights through Nanjing, Xiamen, and Fuzhou airports over the past few days. Chinese officials...

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Bangladesh Latest To Enter Full Lockdown

Bangladesh Latest To Enter Full Lockdown

Bangladesh Latest To Enter Full Lockdown   Following the latest global wave of coronavirus, Bangladesh is the latest Asian country to order a full lockdown, which has been declared until 5 August. With most factories ordered to shut down, export orders will...

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Typhoon To Hit Eastern China Sunday

Typhoon To Hit Eastern China Sunday

Typhoon To Hit Eastern China Sunday   Typhoon “In-fa” is expected to make landfall in Eastern China this weekend, which has led to the early closure of Shanghai and Ningbo in-gates. Forecasters are warning that the typhoon could reach 'Super Typhoon' status as it...

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