Investigation begins
Formal investigations into how the giant container ship Ever Given ran aground in the Suez Canal, shutting down shipping in the major global waterway for almost a week, begin on Wednesday, a canal official told Reuters.
The six-day blockage threw global supply chains into disarray after the 400-meter-long (430-yard) ship became jammed diagonally across a southern section of the canal, the shortest shipping route between Europe and Asia. Egypt’s Leth Agencies said on Wednesday that a total of 163 ships had transited the Suez Canal since its reopening and that a total of 292 ships were currently waiting..
The incident is expected to give rise to flurry of insurance claims, with Lloyd’s of London expecting a “large loss,” possibly amounting to $100 million or more, according to its chairman.
Investigators had already boarded the ship, which is in a lake that separates two sections of the canal, on Tuesday, a canal source and a shipping agent said. The Suez Canal Authority has scheduled accelerated shipping convoys and has said it hopes the backlog of ships can be cleared by the end of the week.
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Global reinsurers face massive losses
This event will reduce global reinsurers’ earnings but should not materially affect their credit profiles, while prices for marine reinsurance will rise further, the credit rating agency said.
A large share of losses will probably be reinsured by a global panel of reinsurers. Global reinsurers are already on the hook for natural disasters such as winter storms in the U.S. and flooding in Australia, as well as COVID-19 pandemic-related losses.
Full article: https://www.businessinsurance.com