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Suez Canal blockage could result in ‘large loss event’

March 30, 2021


Fitch Ratings has warned the reinsurance industry faces a “large loss event” from the blockage in the Suez Canal after the colossal Ever Given container ship ran aground about a week ago, closing access to one of the world’s most vital waterways for global trade.

The ratings agency says the ultimate loss figure will depend on a number of factors such as when normal traffic can resume in the canal. The ship, one of the largest ever built, was finally freed yesterday.

Incidents involving large container ships can lead to property claims in excess of $US1 billion ($1.3 billion) but these are mostly salvage-related.

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