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The accident of Ever Given in Suez Canal once again pushing up ocean rate and shortage of space

08 Apr 2021

By Arthur Chen     Photo by Dan Kb on Unsplash

The Ever Given vessel has released from Suez canal after 6 days blocked and stopped whole canal operation and accumulated over 400 vessels waiting in both sides exit of Suez Canal. The blocked given side effect shall take at least over a week to have all vessels go through and recovered back normal may take another week. The broken of supply chain of all merchandise including oil supply, raw material of paper, general merchandise etc.. have caused prices increased eventually and the ocean rate has once again push up by such incident of block canal, not just from Asia to Europe but also to USA, especially to East Coast which most carriers apply for using Suez canal to European connected to East Coast.

Several carriers have closed the windows for receiving booking in April schedules. In fact, all April sailing schedules have fully booked before the Suez Canal blocked by Ever Given.  The impact to all carriers to have “blank sailing” as well as “ skipping” planned seaports so that to speed up the vessel transit time to make up for the lost time.

Evergreen line has announced all containers importers to submit “Average guarantee” or” Average bond” to cover the “General Average Contribution” in order to take each their own containers when vessel arrival. It means if importers bough insurance policy then it is obligated to be claimed lost ( if any ) by Evergreen line. If importers did not purchase insurance policy for such containers then they may be requested to imposed deposit or bond before getting their containers from Evergreen. In brief, Evergreen line signed up “wet-leased ” contract for Ever Given vessel from the owner Shoei Kisen Kaisha ltd. which is Japanese liner which is the final entity of all liability from law of stand.

On the other hand, Evergreen line is a winner of “FREE” advertisement over a week on news, 24 hours,  in which every countries eyes on the progress of moving Ever Given on right track.  Any lost from Suez canal authorization and importers shall be going to Shoei, Japan.

Even after this unexpected Ever Given accident, Evergreen line has optimized forecast of their income in 2021 because of the constant short of space and high demand in the US and Europe after vaccinated before end of this year. There are 62 new vessels shall be operated in upcoming years that can be expand the capacity of take advantage of high growing demand no matter in Europe, US and Southeast Asia because of RCEP treatment.  Most ocean liners have turn the shinny future toward worldwide economic unlocked.  

Read more related articles :Ocean freight market rate in week 14 : Ocean rate & Air rate from Asia to USA & EU

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