Is the Suez Canal blockage a force majeure event?

No doubt a key consideration in the face of incidents like the Suez Canal blockage is the doctrine of force majeure, which, broadly, enables parties to temporarily suspend performance or vary the terms of performance of a contractual obligation in view of a supervening event that occurs beyond the control or fault of …

How did other countries benefit from the Suez Canal?

The European Mediterranean countries in particular benefited economically from the Suez Canal, as they now had much faster connections to Asia and East Africa than the North and West European maritime trading nations such as Great Britain, the Netherlands or Germany.

Is Suez or Panama Canal older?

The original Suez Canal opened almost 150 years ago linking the Mediterranean Sea with the Red Sea. The canal took almost ten years to dredge and was opened for navigation in 1869. On the other side of the world and about ten years later, the French began construction on the Panama Canal.

What happens to your contracts if the Suez Canal is blocked?

Because of the blockage in the Suez Canal, it is likely that many contracts have been breached due to delays. To avoid liability in future situations like these, make sure you have a force majeure clause in your contracts. Force majeure refers to events outside of reasonable control that prevent someone from fulfilling a contract.

How many ships have been affected by the Suez Canal?

Over 300 vessels at both ends of the canal were obstructed by Ever Given, including five other container ships of similar size. These included 41 bulk carriers and 24 crude oil tankers. The affected vessels represented roughly 16.9 million tonnes (37 billion pounds) of deadweight.

When will shipping resume in the Suez Canal?

The canal was checked for damage, and after being found to be sound, the SCA allowed shipping to resume from 19:00 EGY (17:00 UTC) on 29 March. The vessel was subsequently impounded by the Egyptian government on 13 April 2021 for refusing to pay compensations demanded by the government, a claim deemed to be unjustified by the ship’s insurers.

What are the rules of navigation in the Suez Canal?

Pursuant to the Rules of Navigation, the SCA reserves the right to refuse access to the canal water where vessels may be considered as dangerous or troublesome to navigation in the Suez Canal. By the sole fact of using the Suez Canal water, masters and owners of vessels bind themselves to accept all the conditions of the said Rules of Navigation.