A picture released by Egypt's Suez Canal Authority on March 29, 2021, shows a tugboat pulling the Panama-flagged MV 'Ever Given' container ship after it was fully dislodged from the banks of the Suez. AFP/ Suez Canal Authority
A picture released by Egypt's Suez Canal Authority on March 29, 2021, shows a tugboat pulling the Panama-flagged MV 'Ever Given' container ship after it was fully dislodged from the banks of the Suez. AFP/ Suez Canal Authority
A picture released by Egypt's Suez Canal Authority on March 29, 2021, shows a tugboat pulling the Panama-flagged MV 'Ever Given' container ship after it was fully dislodged from the banks of the Suez. AFP/ Suez Canal Authority
A picture released by Egypt's Suez Canal Authority on March 29, 2021, shows a tugboat pulling the Panama-flagged MV 'Ever Given' container ship after it was fully dislodged from the banks of the Suez.

'Ever Given': Suez Canal Authority says it was not responsible for grounding


Hamza Hendawi
  • English
  • Arabic

The chairman of the Suez Canal Authority said the waterway's management was not to blame for the ultra-large container ship Ever Given running aground in the canal, blocking traffic for six days.

The 200,000-tonne, Panama-flagged vessel was successfully refloated on Monday, ending the blockage that disrupted global trade and impacted markets.

The vessel ran aground on March 23 at a narrow stretch of the waterway just north of the city of Suez.

After refloating it, the Ever Given was taken to the Great Bitter Lake halfway through the 193-kilometre canal to be inspected for damage.

  • This satellite imagery released by Maxar Technologies shows a close up overview of the MV Ever Given container ship and tugboats in the Suez Canal. AFP / Maxar Technologies
    This satellite imagery released by Maxar Technologies shows a close up overview of the MV Ever Given container ship and tugboats in the Suez Canal. AFP / Maxar Technologies
  • The guided-missile cruiser USS Monterey (CG 61), left, and the guided-missile destroyer USS Thomas Hudner (DDG 116) sail behind the aircraft carrier USS Dwight D. Eisenhower (CVN 69) during a Suez Canal transit, in this picture taken April 2, 2021 and released by U.S. Navy. Reuters
    The guided-missile cruiser USS Monterey (CG 61), left, and the guided-missile destroyer USS Thomas Hudner (DDG 116) sail behind the aircraft carrier USS Dwight D. Eisenhower (CVN 69) during a Suez Canal transit, in this picture taken April 2, 2021 and released by U.S. Navy. Reuters
  • In this photo released by Suez Canal Authority, the Ever Given, a Panama-flagged cargo ship, is pulled by one of the Suez Canal tugboats, in the Suez Canal, Egypt. AP Photo
    In this photo released by Suez Canal Authority, the Ever Given, a Panama-flagged cargo ship, is pulled by one of the Suez Canal tugboats, in the Suez Canal, Egypt. AP Photo
  • A spectator waves as the Ever Given container ship moves along the Suez Canal towards Ismailia after being freed from the canal bank in Suez, Egypt. Bloomberg
    A spectator waves as the Ever Given container ship moves along the Suez Canal towards Ismailia after being freed from the canal bank in Suez, Egypt. Bloomberg
  • A man waves at the Panama-flagged MV 'Ever Given' container ship as it is tugged in Egypt's Suez Canal after it was fully dislodged from the banks, near Suez city. AFP
    A man waves at the Panama-flagged MV 'Ever Given' container ship as it is tugged in Egypt's Suez Canal after it was fully dislodged from the banks, near Suez city. AFP
  • A view shows Ever Given container ship in Suez Canal in this Maxar Technologies satellite image. Satellite image ©2021 Maxar Technologies/Handout via Reuters
    A view shows Ever Given container ship in Suez Canal in this Maxar Technologies satellite image. Satellite image ©2021 Maxar Technologies/Handout via Reuters
  • A handout photograph made available by the Suez Canal Authority shows the Ever Given container ship after it was refloated in the Suez Canal, Egypt. EPA
    A handout photograph made available by the Suez Canal Authority shows the Ever Given container ship after it was refloated in the Suez Canal, Egypt. EPA
  • A handout photograph made available by the Suez Canal Authority shows the Ever Given container ship after it was refloated in the Suez Canal, Egypt. The head of the Suez Canal Authority announced on 29 March that the large container ship, which ran aground in the Suez Canal on 23 March, is now free floating after responding to the pulling maneuvers. EPA
    A handout photograph made available by the Suez Canal Authority shows the Ever Given container ship after it was refloated in the Suez Canal, Egypt. The head of the Suez Canal Authority announced on 29 March that the large container ship, which ran aground in the Suez Canal on 23 March, is now free floating after responding to the pulling maneuvers. EPA
  • People watch Ever Given, a Panama-flagged cargo ship, that has been stuck sideways and blocked traffic in Egypt's Suez Canal, move past after it was set free by salvage teams. AP Photo
    People watch Ever Given, a Panama-flagged cargo ship, that has been stuck sideways and blocked traffic in Egypt's Suez Canal, move past after it was set free by salvage teams. AP Photo
  • People watch as the container ship 'Ever Given' is refloated, unblocking the Suez Canal in Suez, Egypt. This morning the container ship came partly unstuck from the shoreline, where it ran aground in the canal last Tuesday, and later resumed its course shortly after 3pm local time. Getty Images
    People watch as the container ship 'Ever Given' is refloated, unblocking the Suez Canal in Suez, Egypt. This morning the container ship came partly unstuck from the shoreline, where it ran aground in the canal last Tuesday, and later resumed its course shortly after 3pm local time. Getty Images
  • A view of the Panama-flagged MV 'Ever Given' (operated by Taiwan-based Evergreen Marine) container ship, a 400-metre- (1,300-foot-)long and 59-metre wide vessel, as it remains lodged sideways impeding traffic across Egypt's Suez Canal waterway. AFP
    A view of the Panama-flagged MV 'Ever Given' (operated by Taiwan-based Evergreen Marine) container ship, a 400-metre- (1,300-foot-)long and 59-metre wide vessel, as it remains lodged sideways impeding traffic across Egypt's Suez Canal waterway. AFP
  • Ship Ever Given, one of the world's largest container ships, is seen after it was fully floated in Suez Canal, Egypt. Suez Canal Authority/Handout via Reuters
    Ship Ever Given, one of the world's largest container ships, is seen after it was fully floated in Suez Canal, Egypt. Suez Canal Authority/Handout via Reuters
  • The container ship 'Ever Given' is refloated, unblocking the Suez Canal in Suez, Egypt. This morning the container ship came partly unstuck from the shoreline, where it ran aground in the canal last Tuesday, and later resumed its course shortly after 3pm local time. Getty Images
    The container ship 'Ever Given' is refloated, unblocking the Suez Canal in Suez, Egypt. This morning the container ship came partly unstuck from the shoreline, where it ran aground in the canal last Tuesday, and later resumed its course shortly after 3pm local time. Getty Images
  • The container ship 'Ever Given' is moving in the Suez Canal, Egypt. The Suez Canal Authority on 29 March said that traffic is to resume after the large container ship 'Ever Given' was refloated. EPA
    The container ship 'Ever Given' is moving in the Suez Canal, Egypt. The Suez Canal Authority on 29 March said that traffic is to resume after the large container ship 'Ever Given' was refloated. EPA

“The Suez Canal is not to blame for the incident,” Adm Osama Rabie, the canal authority’s chairman, told a news conference late on Monday night.

“We are the affected party,” he added, saying the canal suffered $12-15 million in lost revenues each day of the blockage.

The authority has earlier said that strong wind during a sandstorm had blown the vessel off course.

On Saturday, Adm Rabie said he could not rule out human error or technical fault, but refused to draw conclusions, saying a thorough investigation will reveal the guilty parties.

In an apparent attempt to deflect possible blame from the two canal authority pilots who were onboard the Ever Given at the time it ran aground, he said the pair were among the most experienced pilots that were available.

“The accident showed the world the importance of the Suez Canal after some people spoke about alternative routes," he said.

"The Suez Canal remains the shortest and safest waterway and the one that offers the best services in the world.”

That sentiment was echoed by President Abdel Fatah El Sisi on Tuesday, when he met with Adm Rabie and canal employees to thank them for what he described as a “spectacular show of massive resources and capabilities.”

‘There is a silver lining in what happened. It alerted people to the large and important role played by the canal … This is an international facility for global commerce that has been enshrined in the consciousness of world trade for 150 or 160 years.” The canal was inaugurated in 1869.

By Monday afternoon, 422 vessels were stuck in the canal or anchored in open sea near the waterway’s Mediterranean and Red Sea entrances waiting to sail through. On Tuesday, Adm Rabie said traffic resumed at the canal at 6 PM on Monday, 15 minutes after the Ever Given arrived at the Great Bitter Lake.

Since then, he said, 113 vessels transited the canal and 140 more, more than double the normal daily traffic in the waterway, were expected to follow suit on Tuesday.

That figure, said Adm Rabie, testified to the popularity of the canal. He said the alternative route between Asia and Europe around South Africa's Cape of Good Hope was 10,000 miles longer, takes two more weeks to complete when compared with the use of the canal. "It is not safe either," he said.

Adm Rabie said the salvage operation was the first of its kind in the world; to refloat a vessel of Ever Given's size without offloading its cargo.

Osama Rabie, Chairman of the Suez Canal Authority, attends a news conference in Ismailia, Egypt March 29, 2021. Reuters
Osama Rabie, Chairman of the Suez Canal Authority, attends a news conference in Ismailia, Egypt March 29, 2021. Reuters

The 400-metre vessel has a cargo of nearly 20,000 containers.

Helped by the peak of high tide, a flotilla of tugboats managed to wrench the bulbous bow of the skyscraper-sized Ever Given from the canal's sandy bank, where it had been lodged since March 23.

The results of the inspection of the Ever Given at the Great Bitter Lake will determine whether the ship can resume its scheduled service. Once it is complete, a decision and arrangements will be made about the cargo on board.

The first vessels to sail through the waterway after the canal reopened for traffic at 6pm on Monday were YM Wish, Maersk Emeraldas and Ever Globe.

The planned number of vessels to sail through the canal per day has yet to be set by the Suez Canal Authority but maritime expert Ranjith Raja, head of Mena Oil and Shipping Research data company Refinitiv, said 90 to 100 ships a day was possible.

That would be roughly double the usual daily average of about 50.

Refinitiv estimated it could take more than 10 days to clear the backlog of ships.

Seventeen tugboats and support vessels were involved in the last big effort to move the ship on Monday afternoon.

Video shared online early on Monday purported to show the moments after the boat was refloated, with Suez Canal authority personnel heard rejoicing and shouting "Allahu Akbar" (God is Great).

The tugs included the Dutch-registered Alp Guard and the Italian-registered Carlo Magno, according to Leth Agencies. The two vessels arrived at the canal over the past 24 hours.

RESULTS
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Innotech Profile

Date started: 2013

Founder/CEO: Othman Al Mandhari

Based: Muscat, Oman

Sector: Additive manufacturing, 3D printing technologies

Size: 15 full-time employees

Stage: Seed stage and seeking Series A round of financing 

Investors: Oman Technology Fund from 2017 to 2019, exited through an agreement with a new investor to secure new funding that it under negotiation right now. 

Persuasion
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Company profile

Company name: Dharma

Date started: 2018

Founders: Charaf El Mansouri, Nisma Benani, Leah Howe

Based: Abu Dhabi

Sector: TravelTech

Funding stage: Pre-series A 

Investors: Convivialite Ventures, BY Partners, Shorooq Partners, L& Ventures, Flat6Labs

Bio:

Favourite Quote: Prophet Mohammad's quotes There is reward for kindness to every living thing and A good man treats women with honour

Favourite Hobby: Serving poor people 

Favourite Book: The Alchemist by Paulo Coelho

Favourite food: Fish and vegetables

Favourite place to visit: London

The biog

Name: Timothy Husband

Nationality: New Zealand

Education: Degree in zoology at The University of Sydney

Favourite book: Lemurs of Madagascar by Russell A Mittermeier

Favourite music: Billy Joel

Weekends and holidays: Talking about animals or visiting his farm in Australia

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