Group 1 Report docx FOREIGN TRADE UNIVERSITY SCHOOL OF ECONOMICS AND INTERNATIONAL BUSINESS MID TERM REPORT Subject Insurance and Risk Management PI INSURANCE AND LEGAL IMPACT CONCERNING THE STRA.Content Page INTRODUCTION 1 THEORETICAL BASIS 2 Overview of PI Insurance 2 Overview of legal impact analysis 3 OVERVIEW OF THE EVER GIVEN SHIP AND ITS INCIDENT IN SUEZ CANAL 4 Overview of the Ever Given ship 4 Overview of the Ever Given incident in Suez Canal 5 About the incident 5 About the impact on international logistics 5 About the ship rescue journey 5 About the aftermath 6 Overview of the relationship between interested parties 6 EVALUATION OF PI INSURANCE AND THE LEGAL IMPACT OF THE EVER GIVEN INCIDENT 9 PI insurance in the Ever Given case 9 The legal implications relating to the Ever Given’s Stranding Accident in the Suez Canal 13 Domestic Egyptian Legislation and International Law Governing the Suez Canal 13 The Presidential Decree of the Nationalization of the Canal of 1956 13 Law No. 30 of 1975 on the Organization of the Suez Canal Authority 13 International Legal Issue relating to Ever Given’s Blockage of the Suez Canal 14 Cargo insurance 14 General Average 15 International Salvage Law 15 LESSON LEARNED AND RECOMMENDED SOLUTIONS 17 Lesson learned 17 Risks learned from EverGiven case 17 EverGiven incident is a wakeup call for the industry to improve risk management and safety 18 Recommended Solutions 19 CONCLUSION 21 REFERENCES
FOREIGN TRADE UNIVERSITY SCHOOL OF ECONOMICS AND INTERNATIONAL BUSINESS -*** MID-TERM REPORT Subject: Insurance and Risk Management P&I INSURANCE AND LEGAL IMPACT CONCERNING THE STRANDING OF THE MV EVER GIVEN Group: Members: Class: Instructor: TMAE308(GD1-HK1-2223 MSc Hoang Thi Doan Trang Hanoi, September 2022 WORK ALLOCATION Task Introduction Chapter 1: Theoretical basis PIC Quoc Chien 2.1 Overview of the Ever Given ship 2.2 Overview of the Ever Given incident in Thu Phuong Chapter Suez Canal 2.3 Overview of the relationship between Content interested parties Thu Hoai 3.1 P&I insurance in the Ever Given case Chapter 3.2 The legal impact of the Suez Canal blockage Chapter 4: Lesson learned and Recommended solutions Conclusion Slide making Report formatting Phuong Linh Mai Phuong Quoc Chien Thu Hoài TABLE OF CONTENTS Content Page INTRODUCTION THEORETICAL BASIS Overview of P&I Insurance Overview of legal impact analysis 2 OVERVIEW OF THE EVER GIVEN SHIP AND ITS INCIDENT IN SUEZ CANAL Overview of the Ever Given ship Overview of the Ever Given incident in Suez Canal About the incident About the impact on international logistics About the ship rescue journey About the aftermath Overview of the relationship between interested parties EVALUATION OF P&I INSURANCE AND THE LEGAL IMPACT OF THE EVER GIVEN INCIDENT P&I insurance in the Ever Given case The legal implications relating to the Ever Given’s Stranding Accident in the Suez Canal 13 Domestic Egyptian Legislation and International Law Governing the Suez Canal 13 The Presidential Decree of the Nationalization of the Canal of 1956 13 Law No 30 of 1975 on the Organization of the Suez Canal Authority 13 International Legal Issue relating to Ever Given’s Blockage of the Suez Canal 14 Cargo insurance 14 General Average 15 International Salvage Law 15 LESSON LEARNED AND RECOMMENDED SOLUTIONS Lesson learned Risks learned from Ever-Given case Ever-Given incident is a wake-up call for the industry to improve risk management and safety Recommended Solutions 17 17 17 CONCLUSION 21 REFERENCES 22 18 19 LIST OF FIGURES Figure 1: Stakeholder relationship diagram of Ever Given LIST OF ABBREVIATIONS Abbreviation B/L BSM CIF CMI COLREG COSCO DWT EGY FOC G/A kn LOF IGP&I IMO INSTC ISC MMSI mph MT MV nmi NOO OOCL P&I UAE UK US USD VDR SCA SKK teu YAR Explanation Bill of Lading Bernhard Schulte Shipmanagement Cost Insurance and Freight Comité Maritime International International Regulations for Preventing Collisions at Sea China Ocean Shipping Company Deadweight Egypt Standard Time Flag of Convenience General Average knot Lloyd's Open Form International Group of P&I Clubs International Maritime Organization International North–South Transport Corridor 1989 International Convention on Salvage Maritime Mobile Service Identity miles per hour Motor Tanker Motor Vessel nautical mile Non-Operating Owner Orient Overseas Container Line Protection and Indemnity United Arab Emirates United Kingdom United States United States Dollar Voyage Data Recorder Suez Canal Authority Shoei Kisen Kaisha twenty-foot equivalent unit York-Antwerp Rules https://tailieuluatkinhte.com/ INTRODUCTION The incident of the Ever Given container ship getting stuck and blocking the Suez Canal at the end of March 2021 is considered the worst disaster in the past 100 years, on the world's busiest and most important shipping route This historical accident caused enormous economic loss and blocked trade between countries for a long time In addition, not as fast as the plan to expand the channel, the settlement of compensation and legal controversy related to the Ever Given ship's stranding is complicated as predicted by the following international experts, after suffering from the destructive power of a "blockbuster" including a series of compensation costs, up to billions of dollars, including many common expenses such as damaged ships, rescue costs and typically claims under P&I insurance when third-parties claim include the damages from Suez Canal Therefore, the group went to research and found the topic: “P&I Insurance and Legal Impact Concerning the Stranding of the MV Ever Given” To further clarify the extent of the damage that is subject to compensation of the Ever Given accident under P&I insurance and other related legal implications, in addition to the introduction, conclusion, and reference, our team's report will be divided into main parts as follows: Chapter 1: Theoretical Basis Chapter 2: Overview of the Ever Given incident in Suez Canal Chapter 3: Evaluation of P&I Insurance and the Legal Impact of the Ever Given incident Chapter 4: Lesson learned and Recommended solutions Due to the limited time to implement the topic as well as the limited ability, the discussion may have many limitations, we hope you can ignore it and give us suggestions to help us complete our report We sincerely thank you https://tailieuluatkinhte.com/ CHAPTER 1: THEORETICAL BASIS 1.1 Overview of P&I Insurance Among the most widespread types of insurance, there is certainly the one concerning protection and indemnity insurance (Protection Indemnity or simply P&I), which has played an important role in what concerns the maritime accident P&I stands for Protection and Indemnity P&I insurance protects ship owners and operators against civil liabilities that may arise against third parties in the business and operation of ships, specifically: - Liability for bodily injury, illness, death to crew members, passengers, cargo participants on board, and other third parties - Liability for the transported goods - Liability arising in a collision between the insured vessel and another vessel - Liability arising in collisions between ships and other objects such as wharves, floating or underground structures in the sea - Liability for shipwrecks - Responsibility for pollution - Fines of courts, authorities, ports, customs - Other related responsibilities P&I insurance has a long history By the mid-19th century, new needs and problems related to maritime risks had to be met For this reason, shipowners need protection against liability for loss of life and injury under the Merchant Shipping Act 1854 and also for perils not normally marine insurance Since insurance cannot legally be provided on a ship or cargo beyond its value, protection is required for amounts for which the total liability and damage incurred exceeds the value of the ship an insured ship, or collision liability in excess In fact, as Lloyd's statistical committee discovered, the number of collisions at sea increased rapidly after the advent of steamships: unlike sailing ships, they followed more dangerous routes and were prone to collisions Thus, in 1855 the first mutual association was born A P&I club is a mutual insurance association that provides risk pooling, information, and representation for its members At first, protecting clubs flourished https://tailieuluatkinhte.com/ in north-east England, including the North of England Iron Steamship Protection Association which was formed in 1860 Initially, P&I clubs only covered certain risks: risk of collision (25% of collision liability), risk of liability for sailors, crew, passengers, port workers dead or injured, risks of damage to floating and fixed objects, costs of moving wrecks and sunken properties in the port area, loss of cargo Gradually over the years, the associations have not stopped extending coverage limits After centuries of development and expansion, there are 13 members of the P&I club in total working in the International Group of P&I Clubs (IGP&I), providing marine liability cover (P&I) for approximately 90% of the world's ocean-going tonnage, according to the IGP&I introduction Moreover, other P&I clubs are presented in different countries around the globe, such as Bermuda, the US, the UK, UAE, Singapore, Japan, and so on Thus, the importance of P&I clubs is indisputable given the historic Ever Given accident, when there were so many third-party claims to be resolved 1.2 Overview of legal impact analysis According to the study of the Indian Law Institute in 1982, author Colin S Gibson stated that the goal of legal impact analysis is to record and explain how a particular law or group of subject-linked laws works within a particular social setting Moreover, according to a study by G S Bajpai from the Rajiv Gandhi National University of Law in 2011, impact analysis is a “jurisprudence of consequences” The judicial decisions are made, besides the expressed provisions, on the basis of the larger consequences and effects, they intend to effectuate The judicial decision with regard to conflicting values is to anticipate the possible social and behavioral consequences of the alternative course of action Therefore, through the accident of the Ever Given ship, the legal impacts have caused significant negative impacts on many individuals, groups, and businesses on an international scale A thorough analysis of the effects that have been caused will make the resolution of these legal issues more effective, clear, and transparent https://tailieuluatkinhte.com/ CHAPTER 2: OVERVIEW OF THE EVER GIVEN SHIP AND ITS INCIDENT IN SUEZ CANAL 2.1 Overview of the Ever Given ship Ever Given is one of 13 container ships built to the Imabari 20000 design developed by Imabari Shipbuilding, 11 of which have been chartered by Evergreen Marine with names starting with Ever G—.The ship was laid down on 25 December 2015, launched on May 2018, and completed on 25 September 2018 It is Evergreen's second ship to be named Ever Given; the first one (IMO 8320901) was built in 1986 and has since been broken up Vessel information: - IMO: 9811000 - Name: EVER GIVEN - Vessel Type - Generic: Cargo - Hazard A (Major) - Vessel Type - Detailed: Container Ship - Status: Active - MMSI: 353136000 - Call Sign: H3RC - Flag: Panama [PA] - Gross Tonnage: 219079 - Summer DWT: 199692 t - Length Overall x Breadth Extreme: 399.94 x 59 m - Year Built: 2018 - Home Port: PANAMA During its operational history, up to the moment, there have been two considerable events which were 2019 Hamburg collision and 2021 Suez Canal grounding On February 2019, the ship collided with and heavily damaged Finkenwerder, a 25-meter-long HADAG ferry boat that was berthed at Blankenese, near the harbor of Hamburg On March 2021, as it was passing through the Suez Canal on her way to Rotterdam from Tanjung Pelepas, Ever Given became stuck near the village of Manshiyet Rugola and blocked the canal https://tailieuluatkinhte.com/ 2.2 Overview of the Ever Given incident in Suez Canal 2.2.1 About the incident On 23 March 2021, at 07:40 EGY, Ever Given was traveling through the Suez Canal, when it was caught in a sandstorm The strong winds, which exceeded 40 kn (74 km/h; 46 mph), resulted in the "loss of the ability to steer the ship", causing the hull to deviate The ship then ran aground at the 151 km mark (measured from Port Said on the Mediterranean Sea; 10 km (5.4 nmi) from Suez Port on the Gulf of Suez), and turned sideways, unable to free itself, blocking the canal on both sides The crew, consisting entirely of Indian nationals, was accounted for and no injuries were reported At the time of the incident, the ship was traveling from Tanjung Pelepas, Malaysia, to the Port of Rotterdam, Netherlands It was fifth in a northbound convoy, with fifteen vessels behind it when it ran aground near the village of Manshiyet Rugola 2.2.2 About the impact on international logistics 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 Some docked at ports and anchorages in the area, while many remained in place - The estimated loss to Global Trade was 6-10 billion USD - The amount of goods worth 400 million USD was jammed every hour The total loss included 9.6 billion USD in goods that could not be circulated - 13 million barrels of crude oil were blocked in the Suez Canal, causing concern about a decrease in oil supply - The front part of the Ever Given bow was damaged causing water to overflow into two tanks 2.2.3 About the ship rescue journey On 23rd March, the ship Ever Given got stuck in the Suez canal On 25th March, the Suez Canal Authority (SCA) announced to temporarily suspend traffic at the canal so that tugs could rescue the Ever Given https://tailieuluatkinhte.com/ On 28th March, two more tugs had been dispatched to speed up efforts to rescue the cargo ship Ever Given On 29th March, according to maritime service provider Inchcape, the ship Ever Given was officially rescued at 4:30 am (Egypt time) thanks to the efforts of rescue teams The rescue effort was successful after excavators dredged 27.000 meters square of sand 18 meters below the canal bank with the help of 10 tugs 2.2.4 About the aftermath On 13 April, the SCA announced that the ship had been seized on court orders until the owners paid 900 million USD in damages On 4th July 2021, the vessel owners and the SCA agreed on compensation with a reported amount of 550 million USD; the ship would be freed right at the time approximately 40% of its compensation had been paid The ship departed from the Suez Canal on 7th July for scheduled deliveries of cargo at several European ports On 7th July 2021, Egyptian authorities released the ship after an unspecified settlement was reached It was announced that Egypt would also receive a 75-ton tugboat from the ship's Japanese owner, Shoei Kisen Kaisha (SKK), as part of the compensation package Ever Given sailed to Port Said Hull inspections were carried out, with the vessel finally departing on 12th July, after a seizure delay of more than 100 days The ship finally arrived at her destination, Rotterdam container terminal on 29th July, after sailing for 17 days, (although the trip was originally expected to take days), 22 days after her release by the Egyptian government, and over four months after her grounding 2.3 Overview of the relationship between interested parties The Ever Given is a 20,124 teu-class ultra-large container ship, chartered and operated by Taiwan-based Evergreen, which runs a joint operation with COSCO (China) and CMA-CGM (France) through the Ocean Alliance Additionally, the cargo carried onboard and transported by Ever Given not only consists of cargo received by Evergreen as the ocean carrier on the B/L but also of https://tailieuluatkinhte.com/ responsible for the cargo’s G/A contribution Because the owner of the assets that make up a shipping company ensures their insurable interest in return for coverage of the G/A, the insurer in this case will cover the G/A Even though Ever Given was released by the Egyptian authorities on July 2021, SKK must work together with the UK P&I Club to prevent damages (due to delays in delivery and the occurrence of a G/A) from being incurred by global shippers In addition, as an ocean carrier, Evergreen must also set up an advanced, sustainable cargo compensation system to protect shippers’ confidence in the company and to prevent the damages from being passed on to shippers Although the principle of the G/A is a reasonable system that aims to manage the interests of all the concerned parties in a common risk group through the sharing of damages and costs that result from the group’s prevention of common perils, there is a limitation in that, depending on the case, it takes a long time and considerable cost to calculate the G/A when a ship accident occurs and a G/A is declared This is further aggravated if the dimensions of the ships are comparable to those of the new container ships, which was the case with the Ever Given Given the considerable number of containers on board (approximately 18,300), the contributions requested in particular were a complex topic According to Clyde & Co, the international law company that represents a large number of cargo interests, the cash deposit for the breakdown was set at 25% of the cargo value Some cargo owners, however, disputed the sum paid to the SCA, claiming that the ship owner had breached the terms of the contract of carriage and that the cargo should not contribute to G/A If the arguments on this breach of contract are successful, claims relating to G/A would be covered by the protection and indemnity insurance (P&I club) The owners of the commodities on board the ships were severely harmed by the incident in the Suez Canal in March of last year, which was stopped for six days as a result of the Ever Given container ship becoming trapped In this regard, it is important to keep in mind that a standard insurance contract for cargo transported by sea only addresses damage to the cargo or its loss If delay, however, is not covered by the contract, the interested parties may pursue legal action to seek https://tailieuluatkinhte.com/ compensation from the ship owner The Ever Given’s owner, therefore, has collaborated intensively with the UK P&I Club, which has confirmed that it is the guarantor for the complaints that will come from owners of the cargo on board, to prevent further damage to the shippers for delays following the declaration of G/A The P&I club itself stated that Ever Given would have insurance coverage of billion USD While this is a significant amount, it does not ensure the payment of third parties' claims for damages In this case, the injured parties will have no choice but to engage in a long legal battle to retaliate against the Japanese shipowner However, the shipowner (and subsequently the P&I club) have also been involved in the SCA's claims for economic losses resulting from the maritime accident, which initially amounted to billion USD These claims were made in addition to the compensation claims from the owners of the goods on board The total amount of all potential claims, in the opinion of the Club's Chief Claims Officer, can never come close to the billion USD in coverage for the ship Additionally, he considered the Egyptian request unreasonable, especially in light of the cargo's prolonged seizure in the Bitter Lakes Region and the impossibility of returning to the original route For the club, there was an insufficient justification given for the amounts requested Among the costs mentioned are, for instance, the compensation of 300 million USD for salvage reward and another 300 million USD for the loss of reputation concerning the canal's transit On the other hand, it should be emphasized that the ship was able to refloat in just six days, ensuring the resumption of the waterway's usual commercial activities and ship traffic In addition, the Authority's request did not account for the expenses incurred by the salvage companies Nippon and SMIT Salvage, who acted promptly to resolve the issue (and which, as a result, should be paid separately, according to Egyptian logic) Due to this, the club securing SKK's interests opposed the counterparty's request, estimating that the cargo had a value of no more than 500 million USD which was proportional to the number of days of the blockade due to the ship’s grounding On 12 April 2021, the P&I Club made a generous and carefully considered offer to the SCA, despite the lack of lively enthusiasm in the air, due to the Egyptian https://tailieuluatkinhte.com/ court's decision to seize the ship until payment of damages, which would have a direct impact on the crew, unable to leave the ship in the aforementioned period Therefore, the insurers' priority was to make sure the crew of 25 Indian seamen on board could be released with the cargo in the least amount of time This was only possible through a fair agreement with the Egyptian authority The long-awaited agreement was finally signed in early July 2021, in part due to the legal support from a large network of lawyers and expert consultants who worked to protect the interests of the owners of the goods on board the Ever Given and those blocked in the canal The International Chamber of Shipping's support was also crucial, as it took an interest in the issue from the beginning and assisted in the negotiation process Furthermore, the P&I Club's participation (with the approval of the Japanese shipowner SKK) was fundamental in the request to the court for a longer time before the hearing, to reach a definitive and amicable solution that might satisfy both parties The Ever Given's owner and insurers had actually always acknowledged the SCA's entitlement to compensation for accident-related damages, confident that the ship's coverage was more than a third larger than the claims made The club welcomed the SCA's announcement during a press conference that the compensation request had been modified in light of new evaluations of the ship and the cargo provided by the ship's cargo interest on May 30, 2021 The Egyptian authorities finally authorized the release of the container ship on July and on July 13, the Ever Given was freed to resume its course at roughly 10 kn towards Northern Europe with Rotterdam as its destination A request for 15.5% of the CIF (Cost Insurance and Freight) value of the cargo, as established by Clyde & Co, the international legal firm representing a large number of cargo interests, was made by the General Average Adjusters on January 17, 2022, according to the most recent update on the case https://tailieuluatkinhte.com/ 3.2 The legal implications relating to the Ever Given’s Stranding Accident in the Suez Canal 3.2.1 Domestic Egyptian Legislation and International Law Governing the Suez Canal The 1956 Presidential Decree on the Nationalization of the Suez Canal and Law No 30 of 1975 on the Organization of the Suez Canal Authority are the two domestic legal instruments relating to the Suez Canal These domestic legal tools function within the context of international law controlling the Suez Canal and international organizations in the region next to the Suez Canal 3.2.1.1 The Presidential Decree of the Nationalization of the Canal of 1956 Former Egyptian President Gamal Abdel Nasser signed a proclamation nationalizing the Suez Maritime Canal Company in July 1956 Under the 1956 Presidential Decree, the Suez Maritime Canal Company became a government agency in Egypt All of the company's assets, rights, and responsibilities were handed to the Egyptian government The 1956 Presidential Decree provides that the Ministry of Commerce should oversee the Suez Canal Company In addition, the company's yearly budget and balance statement are published in a proclamation signed by the president of the Republic of Egypt 3.2.1.2 Law No 30 of 1975 on the Organization of the Suez Canal Authority Law No 30 of 1975 substituted the Suez Canal Authority for the Suez Canal Company (the Authority) The Authority is mandated by Law No 30 of 1975 to administer, utilize, maintain, and enhance the Canal The president of the republic has the right to appoint and dismiss the authority's managing directors and general managers In addition, the Authority has its own budget The Authority is responsible for enforcing all laws governing marine transit rights in the Canal Additionally, it oversees the nautical activity within the Canal The Authority shall charge and collect tolls for canal navigation and transit It oversees the pilotage, towing, and mooring of ships in the Canal The Authority has the authority to https://tailieuluatkinhte.com/ acquire and occupy the property and real estate next to the Canal and to seize land and real estate in the public interest The rules of the Constantinople Convention of 1888 prohibit the Authority from adopting any measures that restrict the free passage of the Suez Canal In addition, the Authority has no legal authority to discriminate against some ships transiting the Canal in favor of others 3.2.2 International Legal Issue relating to Ever Given’s Blockage of the Suez Canal As a result of Ever Given's disruption of global trade, global supply chains are severely disrupted and will stay so until Ever Given resumes normal operations The repercussions include logistical operations, and legal and insurance effects, affecting parties including the carrier, shipper, ports, charter party, and insurers Over 370 ships were congested in the Suez Canal due to the obstruction To proceed through the Canal, all sorts of vessels were required to wait until the blockage was removed The blockade impeded the delivery of more than billion USD worth of products every day, which is equivalent to 400 million USD per hour Since it had been stranded for more than six days, an estimated 54 billion USD in trade losses were incurred The incident's impact on the worldwide supply chain will also result in insurance claims The claims will not be limited to cargo on the Ever Given, but will also include cargo on ships that will be delayed owing to the inability to pass through the canal Many of these ships must decide whether to wait or circumnavigate the Cape of Good Hope, which is a lengthier and more expensive expedition 3.2.2.1 Cargo insurance The availability of recourse against maritime cargo insurance plans is also not a guarantee, as the majority of marine cargo insurance policies not cover delays-related loss Delays will occur for vessels already close to the entrances of the canal if they elect to wait for the obstruction to pass as well as vessels that https://tailieuluatkinhte.com/ decide to deviate from their intended course and take the longer route through the Cape of Good Hope will also arrive later than expected The Institute Cargo Clauses produced by the Institute of London Underwriters Wordings are used by the majority of cargo insurance contracts This indicates that the Marine Insurance Act of 1906 will apply According to Clause 4.5, the majority of this insurance is of the all-risks variety, and delay is excluded 3.2.2.2 General Average Based on the York-Antwerp Rules (YAR), general average is the method through which insurance adjusters average the contribution of each party who benefited to compensate for the loss of one party The YAR are a collection of model maritime regulations issued by the Comité Maritime International (CMI) and commonly incorporated into shipping contracts (bills of lading, freight contracts, and marine insurance policies) According to the York Antwerp Rule A: “There is a General Average act when, and only when, any extraordinary sacrifice or expenditure is intentionally made or incurred for the common safety for the purpose of preserving from peril the property involved in a common maritime adventure.” The Japanese underwriters of hull coverage in the instance of the Ever Given aim to divide the expenses of refloating the ship with the cargo owners and estimate it will take many years to determine the average contribution of the thousands of firms whose cargo was on board 3.2.2.3 International Salvage Law Marine salvage is when business operators come to the assistance of a vessel in distress in exchange for compensation in order to preserve lives and property The public and private international law governing maritime salvage may be crucial in future lawsuits relating to the Suez Canal blockade As prospective litigation over these and other concerns have not yet been published publicly, the 1989 International Convention on Salvage and the Lloyd's Open Form salvage contract (LOF), depending on the numerous contractual conditions involved and the claims presented, may come into play https://tailieuluatkinhte.com/ The International Salvage Convention of 1989 only compensated the salvage if the ship or cargo was successfully salvaged However, this may discourage salvage attempts where the chance of failure was high and/or the expenditures anticipated to be paid were high Thus, article 13 of the 1989 ISC provides a list of criteria that the reward should consider, including the skill and efforts of the salvors in preventing or minimizing environmental damage, as well as the salved value, the danger, the out-of-pocket expenses, the risk of liability, promptness, and the skill required to salvage the ship LOFs are the most often utilized salvage contracts, which are controlled by English law (LOF 2020 J), with London as the seat of arbitration The ISC article 13 criteria from 1989 might be relevant in future litigation or arbitration actions involving the salvage of the Ever Given (LOF 2020 I) These international tools might play a key role in deciding the legal ramifications of being stranded in the Suez Canal, but it is unclear to what degree the private contracts between the parties involved in the Ever Given case utilized LOFs or followed the YAR