Legal Analysis in Maritime Laws Based on <i>Grounding Case of M/V “EVER GIVEN” in Suez Canal</i>

Abstract

On March 24, 2021, M/V EVER GIVEN from Evergreen Marine Corp stranded in the southern part of the Suez Canal shortly after it entered the canal, resulting in the closure of the two-way channel of the Suez Canal and the blockage of hundreds of ships on the route between Asia and Europe. There exist quite tedious and complicated legal issues behind the stranding of M/V EVER GIVEN, including the contractual liability of M/V EVER GIVEN to the owners of cargo, the legal liability of M/V EVER GIVEN to the Suez Canal Authority and to the rescue force, and the establishment and contribution of general average. As to the specific claims for compensation, the legal relationship between the parties should be made clear firstly, and the establishment of the right to claim should then be confirmed. We should also distinguish claims which have been covered by the insurer or the P&I club from those which should be the responsibility of the ship owner. Combined with the gross tonnage data of M/V EVER GIVEN, the limitation of liability for maritime claims can be calculated according to the 2012 Amendment of CONVENTION ON LIMITATION OF LIABILITY FOR MARITIME CLAIMS 1976. To have a conclusion that the paper will predict whether the owner of M/V EVER GIVEN will be bankrupt, the value of the vessel should be compared with the amount of limitation of liability for maritime claims.

The Impact of Transportation Delays on the Supply Chain — Using the Suez Canal as an Example

“…Furthermore, it is estimated that the voyage of nearly 400 ships transiting the Suez Canal will be delayed for 19 days, resulting in additional losses such as ship rent, fuel oil, other consumables, and crew wages. If a ship's average loss is 40,000 USD per day and the average loss is five days, such losses will be 80 million USD [9].…”

The enhanced role of canals and route choice due to disruptions in maritime operations

“…The importance of alternative routes such as the NSR were also brought into public attention. The first academic works in the subject dealt with legal issues (Yizhen et al. , 2021).…”