Reinsurance Costs From Suez Obstruction To Exceed $100M: McGill & Partners

Analysts at specialist broker McGill and Partners believe that the re/insurance industry could be looking at costs in excess of $100 million due to the ongoing obstruction in the Suez Canal.

The vital trade waterway through Egypt has been blocked by a grounded ship since Tuesday, resulting in a backlog of some 150 ships now waiting to pass through the route.

Reports suggest that it may be possible to move the Ever Given by Monday, when the tide should be high enough to dislodge the 400m-long, 224,000-tonne container vessel.

But a specialist salvage company assisting the operation says the process could take weeks.

The ship had been en route from Yantian to Rotterdam before it lost the ability to steer due to high winds and a dust storm, which caused it to run aground diagonally across part of the Suez passage.