Egyptian authorities are now seeking a $900 million compensation from the Ever Given ship which blocked the Suez Canal for almost a week last month and made worldwide headlines.
Suez Canal Authority (SCA) chief Lieutenant General Osama Rabie said on Tuesday that Ever Given will not be allowed to leave the country until a compensation amount is settled with the vessel’s Japanese owner, Shoei Kisen Kaisha Ltd.
The hefty compensation includes lost revenue, damage to the canal, equipment and labor used to free the ship, and reputational harm.
In its court filing, the SCA referred to Articles 59 and 60 of Egypt’s maritime trade law which stipulates that the ship will remain seized until the amount is paid in full, Al-Ahram reported.
The Ever Given container ship got diagonally stuck in the narrow but crucial global trade artery in a sandstorm on March 23 and was dislodged on March 29.
More than 400 ships were blocked from passing through the lane and Egypt lost between $12 and $15 million in revenues for each day. The circumstances that led to the situation are still being investigated by Egyptian authorities.
While the spokesman for Ever Green’s owner has refused to comment anything on the situation, other sources have revealed that negotiations over damages between that company, insurance firms and the canal authority were ongoing.
Additionally, The ship’s insurers, UK Club, also released their statement, questioning the basis of the claim.
“On April 12, a carefully considered and generous offer was made to the SCA to settle their claim. We are disappointed by the SCA’s subsequent decision to arrest the vessel today,” they said.
Its statement went on to explain why the UK Club believes the magnitude of the claim is not valid.
“The SCA has not provided a detailed justification for this extraordinarily large claim, which includes a US$300 million claim for a ‘salvage bonus’ and a US$300 million claim for ‘loss of reputation.’ The grounding resulted in no pollution and no reported injuries. The vessel was re-floated after six days and the Suez Canal promptly resumed their commercial operations. The claim presented by the SCA also does not include the professional salvor’s claim for their salvage services which owners and their hull underwriters expect to receive separately,” the statement read further.
