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Container ship impounded over $900m Suez Canal claim

Container ship impounded over $900m Suez Canal claim

April 14, 2021
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The huge Ever Given container ship that blocked the Suez Canal for six days could be seized by Egyptian courts as the waterway’s operators fight for compensation caused by the disruption.

A court in the Egyptian city of Ismailia has granted a request by the Suez Canal Authority to seize the 200,000 tonne, 1,312ft vessel, local media reported.

Lt. Gen. Osama Rabie said the hulking Ever Given would not be allowed to leave the country until a compensation amount is settled on with the vessel’s Japanese owner, Shoei Kisen Kaisha Ltd.

“The vessel is now officially impounded,” he told Egypt’s state-run television. “They do not want to pay anything.”

There was no immediate comment from the vessel’s owner.

The authority, which is based in Ismailia, is reported to be seeking $900m in compensation for the disruption caused by the ship running aground in the canal on March 23.    

Ahram Gate, a news website run by the Egyptian government, said the court order would help the canal authority reclaim the costs it incurred from the blockage.

Loss of revenue from transit fees, which start at about $100,000 per ship, ran to $15m a day.

The canal operator is also seeking compensation for repairs to damage caused when the Ever Given hit the right hand-bank of the waterway, along with costs related to dredging and salvage work.

Tags: BusinessCompaniesEgyptStandardSuez CanalTransport and industry
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