Logistics

Egypt seizes Suez ship ‘Ever Given’ pending $900 million compensation

Bloomberg | Updated on April 14, 2021

Compensation is needed to cover losses of transit fees, damage to the waterway, says the Suez Canal Authority

An Egyptian court allowed the ship that blocked the Suez Canal last month to be seized after a request from the waterway’s operator, which is demanding $900 million in compensation, according to local media.

A court in the city of Ismailia granted the request regarding the Ever Given vessel at the behest of the Suez Canal Authority, state-run Ahram Gate reported on its website. The report did not say who the SCA wants compensation from.

 

The move underscores the legal complications following the container vessel’s grounding on March 23, which led to the canal being closed for almost a week and roiled shipping markets. Logjams are expected to continue in the coming weeks at major ports such as Singapore and Rotterdam because of disruptions to schedules, according to supply-chain data provider project44.

The SCA has said compensation is needed to cover losses of transit fees, damage to the waterway during the dredging and salvage efforts, and equipment and labour costs. It has calculated that it missed out on about $15 million of transit fees each day.

Calls placed to the SCA weren’t answered.

A spokesman for Ever Given’s owner, Japan-based Shoei Kisen Kaisha Ltd., declined to comment on compensation while discussions with the SCA are underway. The company said the crew is still on board the ship, which is now in the Great Bitter Lake, about halfway along the canal.

The charterer, Taiwan’s Evergreen Marine Corp., said in an email it hadn’t received any information from the ship’s owner about a court order.

Published on April 14, 2021

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