JAKARTA - The giant container ship The Ever Given is no longer blocking the Suez Canal, Mesi. However, the effects of the events that occurred on March 23 are still being felt today. Thousands of products are still on board, including those of IKEA and Lenovo, due to a protracted legal process.

IKEA and Lenovo along with a number of other companies are still in a protracted legal battle in hopes of recovering hundreds of millions of dollars worth of goods that have been trapped on confiscated container ships for months.

Smaller companies such as British bicycle maker Pearson 1860 and Snuggy UK, which make wearable blankets, have also had important orders stuck.

"We don't expect much to see our stock this year and although it is travel insured, we suspect there will be little chance of seeing a settlement for months if not years," Will Pearson, director of Pearson 1860, told CNN Business as quoted by CNN Business. Wednesday 16 June. His company has more than $100,000 worth of products on board.

terusan suez
Suez Canal. (Wikimedia Commons/Mmelouk)

An Egyptian court confiscated Ever Given and its 18,300 cargo containers, after the Suez Canal Authority filed a preliminary claim of $916 million in compensation against Japanese shipowner Shoei Kisen Kaisha for damage and losses incurred when the ship ran aground in a narrow section of the canal.

During the legal process, the container ship The Ever Given and its cargo were detained in Great Bitter Lake, a canal on the Suez Canal.

Several companies with products on board the Ever Given container ship told CNN Business they were unaware of the status of their goods as legal proceedings continued, and were excluded from negotiations surrounding their release. Even if an agreement is reached, the company or their insurance company will most likely be bound for a portion of the settlement.

Companies may be forced to pay under a maritime law principle called the common average, which requires the parties involved in the voyage to share the costs proportionately in the event of a loss. This principle has its roots in maritime trade rules laid down by the people of Rhodes more than a millennium ago in what is now Greece.

"If someone (the shipowner in this case) is spending an extraordinary amount of money for the common good, then everyone is asked to contribute to it," said Jai Sharma, head of cargo victims at Clyde & Co., the law firm representing the company and insurance with over $100 million in cargo at Ever Given. The company estimates the total value of the goods on board to range from US$600 million to US$700 million.

ever given
Container ship The Ever Given on the Suez Canal. (Source: Suez Canal Authority)

Shoei Kisen Kaisha declined to comment on this story. Meanwhile, the Suez Canal Authority (SCA) did not respond to multiple requests for comment.

Separately, IKEA told CNN Business they have a variety of products on board, but declined to provide further details on those shipments. Lenovo confirmed they also had cargo on board, and a spokesperson said the company was exploring ways to recover the goods.

The stakes are even higher for companies like EasyEquipment, a small British business that does not have marine insurance on its $100,000 commercial refrigerators that were supposed to be delivered to restaurants before coronavirus restrictions eased in May.

"Not only have we lost all the profits from this important order, but it is also affecting restaurant businesses that are hoping to reopen their doors after the lockdown," said CEO Michael Shah.

"We're stuck in this limbo, and I know I'll have to pay this additional (general average) bill to get my shares back," he added.

Pearson 1860 said it had received several updates regarding legal negotiations and the status of its shipping from the canal authority, the Shoei Kisen Kaisha or Evergreen, which operated the vessel.

"There appears to be a shift in blame and an ongoing insurance dispute between the ship's owner, Evergreen and the Suez Canal authorities," Pearson said.

Another complaint was echoed by Snuggy, a small British business founded two years ago. Co-founder Jack Griffiths said his more than $550,000 best-selling product, a hooded wearable blanket, was on board.

This business only makes two large orders per year, and this one is meant to finish by early winter. Griffiths said the delay was causing major cash flow problems for the business.

"We haven't been told about anything, we're completely helpless and left in the dark. I wish we were involved or even kept up with it but we didn't. It's really not a great position to be in and it's a huge hurdle. most new businesses will face to get through," he laments


The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)