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Why did the Japanese finally apologize for the Suez Canal incident?

Updated: May 11, 2021

When the Suez Canal became a topic in the world, I saw that many people were asking this question, "The Indian crew blocked the Suez Canal in Egypt when they drove a Taiwanese cargo ship managed by a Singapore company with the Panamanian flag. Why did the Japanese finally apologize?". I recently listened to the conversations of the maritime circles and financial industry leaders, and compiled informal interview records for readers to further expand.

For that question, the financial expert said, "Because this "Nagagi" is "leaseback after sale", Evergreen built the ship and sold it to a Japanese company, so the Japanese were the owner of the ship. Therefore, the Japanese came to apologize in the event of an accident on the ship based on responsibility.

The capital investment of large ships and aircrafts is too large. In order to beautify the balance sheet, the sale and leaseback is in line with international financial reporting standards. Otherwise, can the P/E ratio* be seen for such a large loan?"

*P/E refers to the ratio of stock price divided by earnings per share.

"Evergreen's P/E ratio looks good, so how do you look at the P/E ratio of Japanese companies?"

"Evergreen Steamship Company is SPV (Special Purpose Vehicle), it can be said that it was established to be its owner. The ship is completely under the command of Evergreen, but the responsibility is "limited" in SPV, so everyone may understand, Maybe there is one SPV per ship. While Japanese companies are not listed companies, their PE ratios do not need to be scored by the majority of shareholders. But listed companies must care."

"I always feel that the Japanese are so savvy. How do you think about this business? There are only a few ships of this size in the world. The rent should be very high, and the income should be good. Is that true?"

"This kind of business is not available in every country. It can be done in Japan because Japan's marine insurance and ship loans are still leading. Why the Panama flag? Why do you do SPV in Japan is all about money. This SPV puts it bluntly, there must be Evergreen's capital shares, but the Japanese company directly face the public."

Suez Canal Event Timeline

- March 24 at 16:29

12% of the world’s international trade channels are "cut off" by Taiwan freighters

- March 26 03:58

Professional suction dredger arrives at the Suez Canal

- March 26 at 12:32

Blocking the Suez Canal loses $400 million per hour

- March 27 at 11:23

Over 200 ships have blocked the Suez Canal

- March 28 at 11:24

The Suez Canal stranded freighter "Long Give" moved 17 meters

- March 29th

The Egyptian Suez Canal Authority issued a statement on the 29th that the heavy freighter stranded in the Suez Canal has completely moved to the normal channel and left the stranded position.

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