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Suez Canal Blocked for 6 days, March, 2021

Hazeem Barakat is the name of the lawyer representing Ever Given owner Shoei Kisen Kaisha, LTD, see Post 44 and Post 48.

Going up against the Suez Canal Authority may be difficult in Egypt.

"Hazem Barakat

Hazem joined EL SWEFY law firm in 2009 until present and works as a counsel in the Firm’s Commercial and Maritime group. Hazem maintains particular experience in the field of corporate law and he advises a number of local and multinational companies on joint venture transactions and contractual restructure."

"Education

University of Alexandria (LLB 2004)

University of Alexandria (Master of Law 2007)

University of Alexandria (PHD 2017)

Languages Arabic – English"






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Judicial and Administrative challenges in Egypt:

"Judicial System
Companies face moderately high corruption risks when dealing with Egypt’s judiciary. While companies show moderate confidence in the independence of the judiciary, they indicate low satisfaction with the efficiency of the legal framework when it comes to settling disputes and challenging regulations (GCR 2017-2018). A quarter of businesses identify the court system as a major constraint to their ability to do business in Egypt (ES 2016). One in five Egyptians believe most or all judges and magistrates are corrupt and more than half of those who came into contact with the courts in the preceding twelve months indicate they paid a bribe (GCB 2017). While the judiciary has traditionally had a reputation as a respected institution and judges have shown a high degree of professionality, decades of authoritarian rule have impacted judicial decisions (BTI 2018). Unfortunately, the courts, and particularly special courts such as military courts, are currently being used for political ends, including the supervision of elections, appointment and dismissal of judges, and political timing of lawsuits (BTI 2018). Dispute resolution takes a long time in Egypt and Egyptian courts do not always recognize foreign judgment."

Public Services
"Egypt’s public services sector carries a high corruption risk for business. Petty corruption, bribery, embezzlement, and tampering with official documents is pervasive within local government offices; particularly when trying to obtain government approvals and licenses (ICS 2017). Roughly a fifth of firms reports expecting to give gifts when attempting to obtain an operating license and over a quarter of firms expect to give gifts when attempting to get a water connection (ES 2016). Moreover, nearly seven out of ten firms identify corruption as a “major constraint” to their ability to do business in Egypt (ES 2016). Inefficient government bureaucracy and corruption are among the most cited problematic factors for doing business in Egypt (GCR 2017-2018). The use of baksheesh is a part of regular life in Egypt and can be compared to tipping in English-speaking countries (BTI 2018)."




Gogle search: corrupt judges Egypt





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Judicial and Administrative challenges in Egypt:

"Judicial System
Companies face moderately high corruption risks when dealing with Egypt’s judiciary. While companies show moderate confidence in the independence of the judiciary, they indicate low satisfaction with the efficiency of the legal framework when it comes to settling disputes and challenging regulations (GCR 2017-2018). A quarter of businesses identify the court system as a major constraint to their ability to do business in Egypt (ES 2016). One in five Egyptians believe most or all judges and magistrates are corrupt and more than half of those who came into contact with the courts in the preceding twelve months indicate they paid a bribe (GCB 2017). While the judiciary has traditionally had a reputation as a respected institution and judges have shown a high degree of professionality, decades of authoritarian rule have impacted judicial decisions (BTI 2018). Unfortunately, the courts, and particularly special courts such as military courts, are currently being used for political ends, including the supervision of elections, appointment and dismissal of judges, and political timing of lawsuits (BTI 2018). Dispute resolution takes a long time in Egypt and Egyptian courts do not always recognize foreign judgment."

Public Services
"Egypt’s public services sector carries a high corruption risk for business. Petty corruption, bribery, embezzlement, and tampering with official documents is pervasive within local government offices; particularly when trying to obtain government approvals and licenses (ICS 2017). Roughly a fifth of firms reports expecting to give gifts when attempting to obtain an operating license and over a quarter of firms expect to give gifts when attempting to get a water connection (ES 2016). Moreover, nearly seven out of ten firms identify corruption as a “major constraint” to their ability to do business in Egypt (ES 2016). Inefficient government bureaucracy and corruption are among the most cited problematic factors for doing business in Egypt (GCR 2017-2018). The use of baksheesh is a part of regular life in Egypt and can be compared to tipping in English-speaking countries (BTI 2018)."




Gogle search: corrupt judges Egypt





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All that means is that the other 4/5's don't want to admit that they are forced to give bribes. International companies have to hire local "expediters" (read: bribers) to get anything done. It's just the way of the turd world.
 
Ever Given crew hired by ship owner. What insurance should cover accidents in operation?

"Evergreen Marine Corp. received a notice from the owner of EVER GIVEN that the chartered vessel ran aground in the Suez Canal at around 8 am local time on March 23. This accident occurred at 6 nautical miles from the southern entry of the Canal as the container ship proceeded northbound through the waterway from the Red Sea. Gusting winds of 30 knots caused the container ship to deviate from its course, suspectedly leading to the grounding. Evergreen has urged the shipowner to investigate the cause of this accident, and work closely with Suez Canal Authority and related agencies to refloat the stranded ship as soon as possible. EVER GIVEN is a 20,000 TEU-class container ship, currently leased by Evergreen Marine Corp. under a time charter agreement with the crew hired by the shipowner. The ship is currently deployed on a Far East-Europe service route."





617 Views.

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SCA reduces demand to about $600m:


"UK Club, an insurer of the container ship that blocked the Suez Canal in March, said on Monday a reduced compensation claim made by the Egyptian authorities for almost $600 million to free the vessel and cover related losses was still “exceptionally large.”

The Suez Canal Authority (SCA) adjusted its claim from an initial $916 million in an effort to settle out of court, SCA head Osama Rabie told private TV network MBC Masr on Saturday."


"An Egyptian economic court is due to hold a hearing on May 22 to consider the SCA claim for what it describes as losses due to the blockage and costs for dislodging the ship, SCA sources said.

An Egyptian investigation into the incident found no wrongdoing by the SCA or its pilots, the sources said, without elaborating.

One source said the court could authorize the SCA to auction off the ship if the owner rejected any ruling to compensate the canal authority. Rabie has also mentioned such an outcome."




"The canal authority said it would reduce the claims for compensation to $600 million from $900 million, according to Rabie. The SCA also offered payment terms to owners of the Ever Given container ship but they have yet to respond, he said."





Is SCA asking for punitive damages?

Is the contractual responsibility of the Captain for the inadequate advice from pilots, perfect, even for punitive damages?

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Widening of Suez Canal is approved:

"Egyptian President Abdel Fattah al-Sisi on Tuesday approved the widening and deepening of the southern part of the Suez Canal, after a stranded ship crippled the critical maritime artery for six days in March.

“What you heard today is about the upgrade in the southern stretch, where the problem (the grounded vessel) happened,” Sisi said from Ismailia, where the Suez Canal Authority is headquartered.

The major engineering enhancement “will lead to improvements in the ability of the guide (SCA) and the captain of any ship to navigate inside the canal,” said SCA head Osama Rabie, who presented the expansion plan to Sisi in a televised address.

The upgrades would stretch “from the 122-kilometer mark to the 162-kilometer mark” and would include a 10-kilometer “duplication of the canal from the 122- to the 132-kilometer mark.”

The project will last 24 months, Rabie added, with the widening extending lanes “by 40 meters to the east and deepening from 20 meters to 30 meters.”




Suez Canal News Summaries:



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General average insurance complications


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"CAIRO (AP) — An Egyptian appeals court on Sunday said it lacks jurisdiction to look into the Suez Canal Authority’s demands to uphold financial claims that led to the the seizure of the massive Ever Given ship after it blocked the waterway in March.

The authority and the ship’s owner are in dispute as to whose fault it was that the ship ran aground in the canal linking the Mediterranean Sea and the Red Sea - and how much compensation should be paid.

The appeals chamber of the Ismailia Economic Court referred the case to a lower court to decide on the legality of the seizure of the Ever Given until the settlement of compensation claim between the the Suez Canal Authority and Shoei Kisen Kaisha Ltd., the ship’s Japanese owner, according to Hazem Barakat, a lawyer representing the vessel’s owner."


"Barakat, the lawyer, said the next court hearing on the case will take place on May 29."

"Barakat said the Voyage Data Recorder, also known as a vessel’s black box, had recorded a debate between canal pilots and its control center over whether it should allowed to transit the canal. There were two pilots from the canal authority aboard the vessel to guide it when the grounding happened."






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$200 m could be a security deposit.


"SCA Chairman Osama Rabie said a $200 million deposit could be enough to secure the ship's release, with the rest payable separately.

The Ismailia court on Sunday referred the case back to a court of first instance, which is due to consider it on May 29, said Ahmed Abu Ali, one of the lawyers representing the owner."




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"Recordings from the ship that were presented to the court showed disagreements between SCA pilots and its control center over whether it should enter the canal, Abu Ali said.

No tugboats

Lawyers for Shoei Kisen said the ship should have been accompanied by at least two tugboats suitable for the ship's size "but this didn't happen," he added.

The SCA did not immediately respond to requests for comment, but it has publicly denied being at fault.

Lawyers for Shoei Kisen also argued that the Ever Given's detention was legally flawed and that the work to release the ship was not "a salvage [operation] in the proper legal sense," meaning the SCA could not seek compensation for such an operation, Abu Ali said.

"This was one of the duties of the authority according to the traffic contract," he said.

Shoei Kisen is claiming $100,000 in initial compensation for losses related to its detention, he said."






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Background of conflicts with pilots and helmsman:


"The 3rd pilot (xxx xxx ID No xxx) after boarding the vessel exchanged a few words with the pilot who was disembarking (in their local language) as is the general practice in Suez.
He refused to exchange pleasentaries with the Master and immediately after the 2nd pilot disembarked he said –
Quote- “Captain, please take the ship and navigate through the canal. I am only here to assist and advise you as per Suez Canal rules.” -Unquote
When questioned regarding what he meant by the same and if he will be giving helm orders and courses to steer, he said that master was fully responsible for the same and navigating through the canal. The pilots job was only to observe and advise as required."









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"The Ever Given’s owner has offered to pay $150 million, according to the SCA, which says that doesn’t cover losses of transit fees, damage to the waterway during the dredging and rescue efforts, and costs of equipment and labor.

The 400-meter-long Ever Given was freed on March 29 after a frantic salvage operation and sailed to the Great Bitter Lake, about halfway along the canal, where it has been kept ever since.

The SCA estimates the goods aboard the ship have a value of $775 million, Chairman Osama Rabie told Sada El Balad, a local television channel, on Sunday night."



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Egypt Court continued from June 20 to Jul 4, 2021.


"An Egyptian court on Sunday adjourned until July 4 the case of a hulking cargo vessel that blocked the Suez Canal for nearly a week earlier this year.

The decision came after both legal teams of the Suez Canal and the vessel's owners asked for more time for negotiations that aim at resolving their financial dispute.

The dispute centers on the compensation amount the Suez Canal Authority is claiming for the salvage of the vessel Ever Given, which ran aground in March, blocking the crucial waterway for six days.


The money would cover the salvage operation, costs of stalled canal traffic, and lost transit fees for the week the Ever Given blocked the canal.

At first, the Suez Canal Authority demanded $916 million in compensation, which was later lowered to $550 million."






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"However, cargo interests told TradeWinds they now expect there is still some way to go before the agreement is wrapped up and payment to the SCA is arranged. It will be at least another 10 days before the ship is likely to be allowed to depart, they suggest.

The delay in the Ever Given's release means it will be likely be the middle of July before 18,000-teu of cargo aboard will be released at the next scheduled port of call in Rotterdam."




Is there still a court hearing scheduled for July 4, 2021?


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Detailed description of grounding of Ever Given in March, 2021.




6000 Word description of grounding;




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"Preparations for the release of the vessel will be made and an event marking the agreement will be held at the Authority's headquarters in Ismailia in due course," Faz Peermohamed of Stann Marine, which represents owner Shoei Kisen and its insurers, said in a statement.
The SCA said the settlement contract would be signed on Wednesday [7-7-2021] at a ceremony, and that participants would be able to watch the ship leaving.


"Osama Rabie, the SCA chairman, said the canal will receive a tug boat with a pulling capacity of about 75 tonnes as part of a settlement, without mentioning any other details."






Views 1K
 
"Suez Canal authorities announced Wednesday the release of a hulking shipping vessel that blocked the crucial east-west waterway for nearly a week earlier this year.

The Ever Given was seen leaving the Suez Canal after its Japanese owner, Shoei Kisen Kaisha Ltd., reached a settlement with the canal authorities over a compensation amount after more than three months of negotiations and a court standoff.

The settlement deal was signed in a ceremony Wednesday in the Suez Canal city of Ismailia, after which the vessel was seen sailing to the Mediterranean."





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"The ship, which became lodged across the Suez Canal for six days in March sparking a huge legal tussle over compensation claims, remains at anchor this morning.

London-headquartered cargo claims specialist WK Webster reports that the Evergreen-operated vessel will undertake bottom cleaning, a dive survey and a further inspection by the vessel’s classification society, ABS.

“The inspections will concentrate on the damage to the vessel’s bow/hull as a result of the grounding along with any additional damage caused by the refloating operations,” WK Webster reported.

Upon completion of the inspections, Shoei Kisen, the ship’s owner, will determine if the vessel can proceed directly to its next port of call, Rotterdam or whether any conditions for the voyage will be imposed by class."








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Ever Given has apparently passed the inspection of the hull damage, and is now underway to Rotterdam.

Google: Ever Given ship location
 
"Ever Given is expected to arrive on its first port of call, Rotterdam’s Delta Terminal, on 28 July to discharge cargo, including transhipment boxes, before leaving for the port’s Euromax Terminal, where on 2 August it will discharge Hamburg-bound cargo for transhipment.

A day later, the vessel will call at Felixstowe to discharge cargo for the UK and transhipment cargo bound for Hamburg. All transhipment cargo will be loaded onto the Ever Utile at Rotterdam’s Delta and Euromax terminals."


"Evergreen said the vessel’s Hamburg call would be omitted, in accordance with the ship’s seaworthiness certificate, which has also directed the vessel to sail at lower speeds. AIS shows the vessel is currently stationary off the coast of Sicily."


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"While EVER GIVEN is en route to her destination ports in Europe, the vessel needs to follow the guidance outlined in its seaworthiness certificate to sail at lower speeds and to call only Rotterdam and Felixstowe. The usual Hamburg port call will be dropped because of concerns surrounding navigation safety. To comply with the safety requirement, the cargoes planned to be discharged in Hamburg will be unloaded in Rotterdam and transshipped to the destination port. Evergreen Line is coordinating with the terminal operators regarding berth arrangements and will maintain close contact with them to ensure the containers can be discharged as soon as possible when the vessel arrives. The ship's operational schedule is planned as follows:
 28 July - ETB Rotterdam Delta Terminal to discharge local imports and transshipments via this port
 02 August - ETB Rotterdam Euromax Terminal to discharge cargoes to/via Hamburg, then transshipped by EVER UTILE 0014-164E
 03 August - ETB Felixstowe to discharge local imports  08 August – EVER UTILE to call Hamburg and discharge local imports and transshipments via this port We wish to advise the cargo interests who..."

file:///C:/Users/Thomas/Downloads/Ever%20Given's%20ETB%20at%20Ports%20of%20Discharge.pdf





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"Cargo interests will have to wait until the end of the month before Ever Given finally reaches northern Europe. The ship, which was already slow-steaming, has now paused to avoid rough weather."




I could not find a good weather forecast for the Western Mediterranian Wind and Wave height. The speed of the Ever Given has been "0 knots" several times over the past few days, when I have checked the Location. Apparently stopped to let bad weather pass.


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"Nearly four months later than scheduled, the 20,388 teu Ever Given docked at the port of Rotterdam at around 05.00 local time today [7-29-2021].

Carrying more than 18,000 containers, the ship will spend till Monday offloading around half of its contents before carrying onto Felixstowe in the UK to disembark the remainder of the hugely delayed containers. Shippers have had to pay extra to get their boxes as general average was declared months ago.

Once all the containers have been removed the ship will be taken out of service and will undergo a full inspection ahead of likely repairs."

 
The current Draught of the Ever Given, at Felixtowe, is 10.5 Meters. Before unloading at Rotterdam, the Draught was 15.7 Meters.





Where the Ever Given is headed next is probably for inspections and repairs.

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