Settlement reached over ship stuck in Suez Canal

Reportedly, the owner and insurers of the mega container ship that blocked the Suez Canal for six days in March 2021 and disrupted global shipping have reached a settlement with the Egyptian authorities.

The insurer's statement did not specify the amount, but said that once the settlement is formalized, the ship ‑ Ever Given ‑ after nearly three months of haggling, finger-pointing and court hearings - would finally complete its journey through the canal.

"Following extensive discussions with the Suez Canal Authority's negotiating committee over the past few weeks, an agreement in principle between the parties has been reached," said a statement from the insurer UK P & I Club. "Together with the owner and the ship's other insurers, we are now working with the SCA to finalize a signed settlement agreement as soon as possible."

Since the ship was freed in a huge salvage effort, about six days after running aground across the Suez, the canal authority had been locked in an often acrimonious stand-off with the ship's owner and operators over what the authority said it was owed for the incident.

The authority had sought up to US$ one billion in compensation, a figure that included the cost of tugboats, dredgers and crews hired to salvage the ship as well as the loss of revenue while the canal was blocked.

Under the standard terms that shipping companies are required to accept before traversing the Suez Canal, ships are liable for all costs or losses they cause in the canal.

Still, the authority never provided a detailed breakdown of how it had arrived at such a large amount.

The sum does not cover the disruption to worldwide shipping, including delayed cargo and costs to other shipping lines, which experts have said could ultimately soar into the hundreds of millions.

Physically, at least, the Ever Given was long ago declared fit to move on. But until compensation is paid, the ship and its crew will remain impounded in the Great Bitter Lake, a natural body of water that connects the section of the canal where the ship was stuck to the next segment, according to SCA Chairman, Osama Rabie.

An Egyptian court had ordered the ship held until the financial claims were settled, a move that drew protests from the Ever Given's Japanese owner, Shoei Kisen Kaisha.

For more than three months, they faced off in an Egyptian commercial court and in the local press.

The Egyptians insisted that the captain - who, under SCA rules, bore ultimate responsibility for commanding the ship despite the presence of Suez pilots who directed steering and speed - was to blame.

Whatever were the Ever Given's objections, the canal having a reputation for demanding large liability sums from ship-owners, enjoyed a strong hand in the negotiations.

The months of negotiations left the ship's crew of 25 Indian seafarers stuck in the middle, unable to leave the Ever Given until the bargaining ends, but for a few cases in which the Egyptian authorities granted crew members' requests to leave after their contracts ended or for family reasons.

India-US begin joint drills in Indian Ocean

According to Hindustan Times, Indian Air Force and Navy on Wednesday kicked off two-day drills with the US Navy in the Indian Ocean Region (IOR) amid China’s attempts to expand its presence in the strategic region. The exercise will also involve the US Navy’s Ronald Reagan Carrier Strike Group (CSG).

The IAF takes part in the exercise with its Jaguar fighters, Sukhoi-30 MKIs, Phalcon AWACS (airborne warning and control system) aircraft, Netra AEW&C (airborne early warning and control) aircraft, and Il-78 mid-air refuellers. The US Navy’s air assets will include F-18 jets and E-2C Hawkeye AEW&C aircraft, the officials said.

Indian warships INS Kochi and Teg along with P-8I submarine hunter planes and MiG-29K aircraft are also taking part in the exercise.

The exercise comes a week after Indian Defence Minister Rajnath Singh called for an open and inclusive order in the Indo-Pacific region, including the South China Sea, with respect for sovereignty and territorial integrity of countries. Singh reiterated New Delhi’s support to freedom of navigation, over-flight and unimpeded commerce for all in international waters in accordance with the UN Convention on the Law of the Sea.

IAF spokesperson Wing Commander Ashish Moghe said the IAF has extensive experience in maritime operations in the IOR. “This has been consolidated over the years by the conduct of exercises from the country’s island territories…This engagement with the US CSG offers one more opportunity to undertake joint operations in the maritime domain with a friendly foreign power.”

He said the exercise will focus on multiple areas including enhancing aspects of interoperability, nuances of international integrated maritime search and rescue operations, and exchange of best practices in the maritime airpower domain.

The navy said in a statement that the Indian warships along with aircraft from the Indian Navy and IAF will be engaged in joint multi-domain operations with the CSG comprising Nimitz-class aircraft carrier Ronald Reagan, Arleigh Burke-class guided-missile destroyer USS Halsey and Ticonderoga-class guided-missile cruiser USS Shiloh. “High tempo operations during the exercise will include advanced air defence exercises, cross-deck helicopter operations, and anti-submarine exercises. The participating forces will endeavour to hone their war-fighting skills and enhance their interoperability as an integrated force to promote peace, security, and stability in the maritime domain.”

The Indian Navy is carrying out round-the-clock surveillance in the IOR, which, it believes, China will inevitably try to enter in its quest to become a global power, just as it has laid claim to large portions of the disputed South China Sea.

Prospects of US joining JCPOA getting bleaker

According to an AP report, Biden administration officials are insisting that the election of a hard-liner as Iran’s president won’t affect reviving the 2015 nuclear deal with Tehran. But, there are signs that prospects of concluding a deal are getting bleaker.

Optimism that a deal was imminent faded as the talks ended on Sunday without tangible indications of significant progress. On Monday, in his first public comments since the vote, incoming Iranian President Ebrahim Raisi rejected a key Biden goal of expanding on the nuclear deal if negotiators are able to salvage the old one.

Raisi is likely to raise the Iran’s demands for sanctions relief in return for Iranian compliance with the deal, as he himself is already subject to US human rights penalties.

“I don’t envy the Biden team,” said Karim Sadjapour, a senior fellow at the Carnegie Endowment for International Peace who has advised multiple US administrations on Iran. “I think the administration now has a heightened sense of urgency to revise the deal before Raisi and a new hard-line team is inaugurated.”

President Joe Biden and his team have made the US return to the deal one of their top foreign policy priorities. The deal was one of President Barack Obama’s signature achievements; one that aides now serving in the Biden administration had helped negotiate and that Donald Trump repudiated and tried to dismantle as president.

Despite Raisi’s impending presidency, Biden administration officials insist prospects for reaching an agreement are unaltered. They argue that Iran’s Supreme Leader Ayatollah Ali Khamenei, who signed off the 2015 deal known as the Joint Comprehensive Plan of Action (JCPOA), will make the final decision, regardless of who is president.

“The president’s view and our view is that the decision leader is the supreme leader,” White House press secretary Jen Psaki said Monday. “That was the case before the election; it’s the case today; it will be the case probably moving forward.”

“Iran will have, we expect, the same supreme leader in August as it will have today, as it had before the elections, as it had in 2015 when the JCPOA was consummated for the first time,” State Department spokesman Ned Price said.

But hopes for substantial progress fizzled last week ahead of the Iranian election amid a flurry of speculation about the impact of the vote on the indirect talks between Iran and the US in Vienna. Diplomats and others familiar with the talks had thought the last round, the sixth, could produce at least a tangible result even if it fell short of a full deal.

Now, that round has ended and a seventh round has yet to be scheduled as Raisi, Iran’s conservative judiciary chief, brandished an absolute rejection of anything more than Iran’s bare minimum compliance with the 2015 agreement in exchange for a lifting all of US sanctions.

In his public comments Monday, Raisi brushed aside US calls for Iran to agree to follow-on discussions on expanding the initial nuclear deal to include its ballistic missile program and its support for regional groups that the US designates terrorist organizations.

“It’s nonnegotiable,” Raisi said’

Iran experts agree it will be a tough, if not impossible, for Biden to get Iran to go beyond the nuclear agreement.

“I’m very skeptical that once we’ve lifted the sanctions to get them to return they’ll feel any incentive to come back and negotiate more concessions,” Sadjapour said. “And, if we coerce them with sanctions to come back to the table, they’ll argue that we’ve abrogated our end of the nuclear deal again.”

Critics of the nuclear deal maintain that the administration has already given away too much in exchange for too little by signaling its desire to repudiate Trump’s repudiation of the nuclear deal. And, they say that even if Iran agrees to some sort of additional talks, the pledge will be meaningless.

“It was pretty obvious that the Iranians were never going to negotiate in good faith beyond the JCPOA,” said Rich Goldberg, a Trump administration National Security Council official who has espoused a hard line on Iran.

“But now, even if the administration gets some sort of face-saving language from the Iranians about future talks, Raisi has already said they’re not interested. The jig is up,” he said. “You can’t come back to a skeptical Congress, allies and deal opponents and say the promise means anything it means when Raisi has already said it doesn’t.”

But administration officials are adamant that as good as the nuclear deal is, it is insufficient and must be improved on.

“We do see a return to compliance as necessary but insufficient, but we also do see a return to compliance as enabling us to take on those other issues diplomatically,” Price said, adding that the point had been made clear to the Iranians “in no uncertain terms.”

An additional complication is that Raisi will become the first serving Iranian president sanctioned by the US government even before entering office, in part over his time as the head of Iran’s internationally criticized judiciary — a situation that could complicate state visits and speeches at international forums such as the United Nations.

Psaki and Price both said that the US will continue to hold Raisi accountable for human rights violations for which he was sanctioned by the Trump administration.

Trump withdrew from the nuclear deal in 2018 and set about a “maximum pressure” campaign on Iran that included re-instating all the sanctions eased under the agreement along with adding a host of new ones.

Israel’s warning to United States or declaration of war against Iran

IDF Chief of Staff Lt. Gen. Aviv Kohavi warned the United States officials against rejoining the Iranian nuclear deal. He is visiting Washington to discuss the threat posed by Tehran’s nuclear program.

“The Chief of the General Staff emphasized the shortcomings of the current nuclear agreement, which will allow Iran to make significant progress related to centrifuges as well as to substantially enhance the amount and quality of enriched matter over the next few years, also emphasizing the lack of supervision in terms of nuclear proliferation,” the IDF Spokesperson’s Unit said in a statement.

Israel’s top military officer explained the threat created by returning to the original nuclear agreement and emphasized that all measures should be taken to prevent Iran from achieving military nuclear capabilities.

Kohavi is in Washington on a four-day visit and is holding meetings with Secretary of Defense Lloyd Austin, National Security Advisor Jake Sullivan, Chairman of the Joint Chiefs of Staff Gen. Mark Milley, Head of the US Central Command Gen. Kenneth McKenzie, and Head of the US Special Operations Command (SOCOM) Gen. Richard Clark.

In light of the close alliance between Israel and the United States, it is rare for a chief of staff to make public remarks about political issues or to criticize the foreign policies of allies.

But Kohavi has made it clear that he views the 2015 Joint Comprehensive Plan of Action as dangerous, saying in January that he has directed the IDF to prepare fresh operational plans to strike Iran in order to stop its nuclear program if necessary.

“Iran can decide that it wants to advance to a bomb, either covertly or in a provocative way. In light of this basic analysis, I have ordered the IDF to prepare a number of operational plans, in addition to the existing ones. We are studying these plans and we will develop them over the next year,” Kohavi said in a speech at the Institute for National Security Studies think tank’s annual conference.

 “The government will of course be the one to decide if they should be used. But these plans must be on the table, in existence and trained for,” he added.

During his trip, which is his first as Israel’s top military officer, he is meeting with his American counterparts to discuss common security challenges in the region, including issues related to the threat posed by the Iranian nuclear project, Tehran’s attempt to entrench itself in the Middle East, Hezbollah’s attempts to strengthen itself and the consequences of the Lebanese terror group’s precision missile project.

The leaders also discussed the challenges and related responses in the Palestinian arena, focusing on the Gaza Strip. Kohavi also presented the military’s main takeaways from Operation Guardian of the Walls.

His visit to Washington that was scheduled to take place in April was postponed due to the fighting with Hamas and other groups in the Gaza Strip.