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Egyptian judges are highly motivated to rule how Sisi tells them. Assuming Ever Given's insurers get stuck for the entire billion, the ensuing premiums for Sue
by BXLE_1-1-BitIs1 6y ago
Egyptian judges are highly motivated to rule how Sisi tells them.
Assuming Ever Given's insurers get stuck for the entire billion, the ensuing premiums for Suez transit for similar sized ships might just make routing around the Cape more economic. If there's a 1/2,000 chance of getting stuck in the Suez, the insurer would need a premium of $500,000 to break even. So the ship can either spend the $500,000 on Suez premium or on fuel to go around the cape.
Which will of course deprive Egypt of the fees it charges large ships.
- PhantomGremlin 6y agoIf there's a 1/2,000 chance of getting stuck in the Suez, the insurer would need a premium of $500,000 to break even. Not necessarily. The Ever Given has a length of 1312 feet, beam of 193 feet, and draft of 108 feet. That ship is huge! There's not a linear relationship between ship size and "chance of getting stuck". Slightly smaller ships would probably have a much lower premium.
- jjk166 6y ago> If there's a 1/2,000 chance of getting stuck in the Suez 50 Ships on average pass through the suez canal per day. In the ~20 years that ships have been large enough to potentially block it, this has happened once. That's a roughly 1/365,000 chance of getting stuck. Even if we assume the risk is actually 10 times higher, that would only be a $27,000 premium - basically a rounding error compared to the $700,000 in tolls each ship already needs to pay.