The Strategist

Suez Canal Authority estimates damage from Ever Given accident at $1B

04/01/2021 - 04:09

The damage to its administration from the blockage of the Suez Canal was about $1 billion, said Osama Rabie, the head of the administration. According to him, the investigation into the accident will take at least a week. The container ship Ever Given will not leave the canal until the investigation is completed.

Maxar Technologies
Maxar Technologies
"We will keep calculations, take into account all the funds we have used since the first day of the incident, the costs of tugboats and dredging vessels that were working around the clock, it is a significant amount," Mr Rabie told TV channel Sada el-Balad.

He noted that the preliminary amount of damage was "$1 billion or so". "This is what is rightfully owed to the state," the channel's chief of staff added.

Allianz has estimated the damage from blocking the Suez Canal to global trade at $6-10 billion a week. According to The Loadstar, operational costs of idle ships were about $3.25 million a day for container ships and about $500,000 for tankers.

Traffic in the Suez Canal has been blocked since March 23. The container ship Ever Given was grounded on 29 March. According to experts, the Suez Canal was losing $12-14 million in revenue daily due to the blocked traffic.


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