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Ancient Law Could Force Companies to Pay Suez Canal Ship's Costs

June 24, 2021 Eric Sorensen
IEN Radio
Ancient Law Could Force Companies to Pay Suez Canal Ship's Costs
Show Notes

We may have forgotten about the supply-chain debacle inflicted by the infamous ship that became trapped in the Suez Canal this past spring, but those manufacturers with goods aboard haven’t.

Companies with products aboard the Ever Given in March are still awaiting their goods. And while the cargo ship may not be immobilized, those companies continue to sit in limbo — with their products and money hanging in the balance.

An Egyptian court impounded the Ever Given following the filing of a $916 million compensation claim by the Suez Canal Authority against the ship’s owner. As a result, the ship is stuck once again, but this time, it’s trapped in the Great Bitter Lake amid the legal battle.

Unfortunately, the waiting might not be the worst of it. According to a report by CNN Business, companies such as IKEA, Lenovo, Snuggy and many more may also have to pay to settle the financial obligations of the ship due to an ancient maritime law principle called “General Average.”

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