Ever Given may embroil Egypt in liability disputes

Significance

The SCA aims to clear the traffic jam caused by the blockage within four days, but it will probably take several weeks to clear the backlog on supply chains.

Impacts

• The Egyptian government will seek to present the blockage as a freak event which it managed efficiently.
• To maintain confidence in the Suez Canal route, the SCA will need to review safety protocols and offer some financial incentives.
• The incident has reinforced the economic case for Egypt’s new project to build a railway line from the Gulf of Suez to the Mediterranean.