• ITVI.USA
    15,314.590
    184.430
    1.2%
  • OTRI.USA
    24.080
    0.010
    0%
  • OTVI.USA
    15,313.750
    188.540
    1.2%
  • TLT.USA
    2.710
    0.000
    0%
  • TSTOPVRPM.ATLPHL
    3.350
    0.280
    9.1%
  • TSTOPVRPM.CHIATL
    3.090
    0.230
    8%
  • TSTOPVRPM.DALLAX
    1.730
    0.070
    4.2%
  • TSTOPVRPM.LAXDAL
    3.100
    0.150
    5.1%
  • TSTOPVRPM.PHLCHI
    2.160
    0.120
    5.9%
  • TSTOPVRPM.LAXSEA
    3.570
    0.220
    6.6%
  • WAIT.USA
    125.000
    -2.000
    -1.6%
  • ITVI.USA
    15,314.590
    184.430
    1.2%
  • OTRI.USA
    24.080
    0.010
    0%
  • OTVI.USA
    15,313.750
    188.540
    1.2%
  • TLT.USA
    2.710
    0.000
    0%
  • TSTOPVRPM.ATLPHL
    3.350
    0.280
    9.1%
  • TSTOPVRPM.CHIATL
    3.090
    0.230
    8%
  • TSTOPVRPM.DALLAX
    1.730
    0.070
    4.2%
  • TSTOPVRPM.LAXDAL
    3.100
    0.150
    5.1%
  • TSTOPVRPM.PHLCHI
    2.160
    0.120
    5.9%
  • TSTOPVRPM.LAXSEA
    3.570
    0.220
    6.6%
  • WAIT.USA
    125.000
    -2.000
    -1.6%
American ShipperNewsTop Stories

Ever Given’s arrest and manifest — and the impact on US importers

‘It would be an absolute logistical nightmare to get that vessel unloaded and reloaded onto other vessels’

The recent arrest of the Ever Given by the Suez Canal Authority has added to the complexity of the unloading of its cargo. While cargo owners deal with this latest legal wrench, American Shipper has learned more specifics about the products stuck on the Ever Given, as well as the overall number of containers that were on the vessels delayed by the Suez closure.

According to supply chain management software provider E2open, the Ever Given is approximately 85% loaded. E2open is tracking about 10% of the overall load for its customers. Out of respect to the carrier’s privacy and its customers, E2open said it would not divulge any additional detail on specific companies or contents.  

“The owners of cargo on the Ever Given are facing a different set of challenges since the ship is stuck again, now for legal reasons, for an uncertain period of time,” said Pawan Joshi, E2open’s executive vice president of product management and strategy. “Cargo owners have to now scramble to rebalance and reroute alternate goods to deal with potential stock-outs on retail shelves and shortages across manufacturing sites.” 

Maritime sources with knowledge of the Ever Given’s manifest tell American Shipper the following product categories are on the vessel, in order from the most twenty-foot equivalent units (TEUs) to the least: electronics, machinery and parts, household goods, furniture and footwear. For legal reasons, American Shipper is not allowed to provide exact percentages.

Frustrated cargo owners are pressuring the ship’s operator, Evergreen Marine Corp., to unload the Panama-flagged container ship, but that will not be an easy task. 

“It would be an absolute logistical nightmare to get that vessel unloaded and reloaded onto other vessels,” explained Paula Bellamy, managing director of Ocean Wide Logistics (OL) Dubai. “Starting with the cost element of the double handling, there is cargo on board which is losing time with expiry dates. Customers also have no idea when they will be able to receive them. Then you also have customers with deadlines that come with penalty clauses. 

“It’s a very sorry situation.”

Francisco Carreira-Pitti, senior partner at Carreira Pitti PC, the leading plaintiff firm in Panama and at the Panama Canal, explained the general average process now that the ship has been arrested. 

“The vessel has been arrested, but the cargo cannot be arrested. Now more than ever, cargo owners have to arrange bonds to transship the cargo out of MV Ever Given,” he said. “The cargo has to be unloaded, individually or collectively. Bottom line, you need to reach agreements about the GA bond with the insurer and the average adjuster.”

Carreira-Pitti noted that a “flag arrest” in Panama is perfectly possible in the future to protect the right against the vessel. “This would freeze the Ever Given’s registration with the PMA (Panama Maritime Authority), preventing the owners from reflagging the ship and registering with a new mortgage and transferring it to a new ownership or changing its name.” 

He added, “Having the Ever Given arrested in Egypt means recovery could be very speculative for cargo. It is not a good idea to have cargo owners file additional claims. A flag arrest in Panama is a better remedy since there are not competing claims such as the Suez Canal Authority.”


Impacted world trade by container

E2open analyzed the world’s trade that was stopped by the Ever Given blockage. Household/personal products topped the list. Below is a chart of the amount of containers stuck on other vessels (TEUs).

Household/personal products (19,820)China to UK (7,082)
Vietnam to US (3,478)
China to Germany (3,250)
China to France (2,431)
China to Netherlands (2,416)
India to USA (1,163)
Waste paper (11,456)USA to India (11,456)
Construction materials (10,766)Belgium to China (10,766)
Machinery/industrial parts (6,727)India to USA (2,240)
China to Netherlands (1,612)
China to UK (1,469)
China to France (1,406)
Textile, apparel & luxury goods (5,439)India to USA (4,189)
China to UK (1,250)
Auto components (4,728)India to USA (1,935)
Germany to China (1,653)
China to UK (1,140)
Food products (2,494)India to USA (2,494)
Metals & mining (1,452)USA to India (1,452)
Construction & engineering (1,364)India to USA (1,364)
Beer (641)Netherlands to China (641)
TOTAL (64,887)
Source: E2open

One of those U.S. importers is Tony Gualtieri, co-founder of Oleavanti. His Lebanese extra-virgin olive oil is sitting in a 20-foot container filled with approximately 6,000 liters of olive oil in barrels, bottles and bag-in-box packages in Malaysia. 

His import was originally scheduled April 28. Now because of the vessel delay, he is expecting his container by the end of May.

“Unfortunately, the vessel we are scheduled to be loaded on was one of the vessels stuck in the Suez, so she is late on her route,” explained Gualtieri. “We normally use the Malaysia to the Port of Los Angeles route. But the delays are so bad at the Port of LA now, once the vessel arrives it will take even longer for us to get our product. 

“The Suez closure has me rethinking how to move my product the next time.”


Total of US containers delayed

The categories of goods bound specifically for the U.S. fall into industries that have been experiencing lean inventories.

Source: E2open

Gualtieri told American Shipper that for his future imports, he will no longer use the West Coast ports. Instead he will import to the East Coast and then transport the container by rail to the West Coast. 

“It is cheaper and faster to use the East Coast route,” Gualtieri said. “I have learned a lot about logistics in the last year. Before we moved to the West Coast, we were based in Michigan, so we used either the NY/NJ or Halifax ports. 

“We thought the Pacific route would be more direct for us now that we are based on the West Coast. It’s not. The port delays there are too long.

“Logistics management is very interesting. It’s down to the penny. Trade reminds me of those guys spinning plates. When everything is going great, it’s smooth. But when one thing goes bad, the whole system gets thrown off.  This is trade now. All the pieces within the supply chain need to be harmonious and it isn’t right now.”

Lori Ann LaRocco

Lori Ann LaRocco is senior editor of guests for CNBC business news. She coordinates high profile interviews and special multi-million dollar on-location productions for all shows on the network. Her specialty is in politics, working with titans of industry. LaRocco is the author of: “Trade War: Containers Don’t Lie, Navigating the Bluster” (Marine Money Inc., 2019) “Dynasties of the Sea: The Untold Stories of the Postwar Shipping Pioneers” (Marine Money Inc., 2018), “Opportunity Knocking” (Agate Publishing, 2014), “Dynasties of the Sea: The Ships and Entrepreneurs Who Ushered in the Era of Free Trade” (Marine Money, 2012), and “Thriving in the New Economy: Lessons from Today’s Top Business Minds” (Wiley, 2010).

7 Comments

  1. Better to pay up 50% of the demand as asked by Suez Canal authorities and get to release the vessel and the Bal amount negotiable. With the type of cargi description its also advisable to contribute and clear the muck.

  2. I can’t imagine the catastrophy and sorrow this would bring if just ONE of those containers was secretly transporting illegal aliens into some country. Especially food, water supplies and human waste build up.

  3. I would charge Panama for all expired goods because of the hold on the cargo. And i wouldn’t blame countries to find alternate routes to avoid the canal and the canal would lose income because of this delay instead of charging the company and releasing the ship.

  4. From articles I have read this ship is at the maximum size to pass through the canal. This indicates that this is likely to happen again. So what is accomplished by essentially holding the ship for ransom. Maybe “the bigger the better” isn’t such a good idea

  5. Where are those animals caught up in the evergreen no animal deserves to be left to die if humans were on there they would have been taken off pronto exactly where animals should not be transported how awful to die like that you should be ashamed and answer my question this is the 2nd time I have asked put yourselves in their shoes get them out now your inhuman 😠

  6. This is what happens with runaway flag ships. Owners of ship lease to 2 or 3 of their shell companies in other countries. Mostly Panama and Liberia. In doing so, they don’t have to be crewed by more expensive, experienced merchant mariners, nor meet the same inspection standards of Japan or USA. ( HUGE problem with US merchant marine industry)

    Make Evergreen and it’s subsidiaries pay!

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