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Description: The massive ship Ever Given has been freed from the Suez Canal, yet the cargo vessel is still “stuck” in Egypt. Authorities have impounded the Ever Given until its owners settle up with the canal authority on the damages stemming from the incident. Costs may hit upwards of $900 million, including the operational costs of freeing the Ever Given and the fees the canal operators lost during the six days of closure.

Date:  April 13, 2021

Source:  cbc.ca

 Link: https://www.cbc.ca/news/business/suez-canal-ever-given-1.5985482

Discussion points:

1) Did you follow the story of the Ever Given? Were you aware the ship had been impounded?

2) Are you surprised by the $900 million price tag?

3) Page 364 of Wiley’s Understanding Financial Accounting provides an example of how the Port Authority in Nanaimo, British Columbia has to calculate costs. What types of costs do you think the Suez Canal managers would have included to arrive at the $900 million figure mentioned in this story?

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