The Suez Canel Blockage: A Legal Analysis of Impacts, Liabilities and Risks on the Global Supply Chain

Abstract

In 2021, the Suez Canal was blocked by a mega container vessel, the Ever Given, causing a global supply chain disruption. Hundreds of vessels scheduled to pass through the canal in both directions were forced to find alternate routes and alter their schedules. Various stakeholders along the supply chain have been seriously affected by the event, including container ship liners, shippers, consignees, logistics service providers, ship operators, shipowners, container terminals and container leasing companies, with billions of dollars held up in the process. This paper analyses the respective claims and liabilities of the parties involved. It examines the risks involved in canal blockages and their impacts on global trade and the supply chain. Implications and solutions, including contracts of affreightment, charterparties, claims, insurance, and general average, are discussed with reference to the Hague–Visby Rules and other relevant regulations. As maritime transport supports the global supply chain linkages and promotes economic growth, this paper provides vital insight into the legal context of canal blockages’ effects on the global supply chain for the development of both research and industry. The paper also serves as a reference for policy to minimise the effects and costs of any similar disruptions, presenting recommended measures for various stakeholders along the global supply chain.