Reconciled! After being detained for three months, the freighter "Changci" finally has hope to leave!
Reconciled! After being detained for three months, the freighter "Changci" finally has hope to leave!
According to comprehensive reports, the owner and insurance company of the giant container ship "Longgi" that blocked the Suez Canal in March this year has reached a "principle agreement" with the Egyptian Suez Canal Authority on compensation. The "Longgi" was detained for several months. "It is expected to be released and set sail within a few days.
According to a Reuters report, Permo Hamed, a lawyer representing the owner and insurance company of the "Long Ci", said in a statement yesterday that the two parties are currently working to finalize and sign a settlement agreement as soon as possible. Arrange to release the cargo ship after handling the formalities.
The chairman of the Suez Canal Authority (SCA), Rabyer, also said on a local TV program in Egypt on the evening of the 23rd, "We agree to resolve this issue in a peaceful manner, not through the courts, and have reached a final solution. The agreement is being drafted. And will be reviewed."
Rabiet also stated that the Canal Authority considered the agreement reached "satisfactory" and added that the two parties have signed a confidentiality agreement, so the compensation amount will not be disclosed until everything is finalized and signed.
According to the "Wall Street Journal" citing people familiar with the matter, the preliminary agreement announced on the 23rd requires approximately US$200 million in compensation. However, the charterer, technical manager and owner of the ship declined to comment.
According to reports, the "Longci" has been moored in the lake between the two sections of the Suez Canal since its retreat on March 29. The 400-meter-long "Changci" suffered an imbalance due to strong winds and other factors on March 23 this year. It ran aground and blocked the Suez Canal channel for several days, resulting in the suspension of two-way traffic on the canal.
The Suez Canal Authority originally asked the shipowner to pay US$916 million in compensation to make up for the loss of salvage work, reputation and income. The administration later publicly reduced its claims to 550 million U.S. dollars.
The owner of the "Changci" Zhengrong Steamship and the insurance company did not agree to the compensation amount, and the Suez Canal Authority applied to an economic court to detain the freighter. Approval was obtained in mid-April, and the "Changci" was subsequently detained. .
Zhengrong Steamship Company refused to accept the judgment of "arresting the ship" and filed an appeal. However, the court has postponed the sentence several times so that the parties to the litigation can reach an "friendly settlement."
Legal disputes after the accident are also a concern for cargo owners, because compensation negotiations may be continuously delayed due to lawsuits involving the goods.
According to overseas media reports, among all the large and small companies that have been detained, there are two largest shippers-IKEA and Lenovo. It is reported that their detained goods are worth 780 million US dollars! If the dispute over claims continues to stalemate, the cargo may continue to be trapped and release indefinitely.
For cargo owners, another worrying issue is the lack of transparency in the legal procedures of the negotiating parties. What they should really worry about is whether these valuable goods will be eaten due to "general average"!
Because of the maritime principle of "general average", the owner of the cargo bears equal responsibility for the loss caused by the accident and shares the liability for compensation with the shipping company.
If the goods are not added to the settlement agreement, then for the owner of the goods, it will be "you have not discussed it"!
