While the investigation into the grounding of the Ever Given in the Suez Canal begins, Shoe Kisen, the vessel’s Japanese owner, declared General Average.

General average is a global maritime industry loss mitigation convention. With it the ship owners and cargo interests proportionately contribute to fully reimburse those in the venture who sustained loss or damage in preventing the total loss of a vessel, crew and its cargo.

Shoe Kisen has appointed Richard Hogg Lindley as adjustor. The vessel, is currently held at the Bitter Lakes for undergoing technical inspections. Although the vessel itself seemed to be not much damaged, the costs of the whole operation of unblocking the Suez Canal and the possible compensation claims from a variety of interests such as the Suez Canal Authority or shipping companies caught up in the backlog, could amount to a sizeable bill.

Fortunately the backlog of vessels waiting to transit Suez will be cleared in the next couple of days. Yet the cargo on the Ever Given itself could be in for a long wait for it to be released.