Published: 20:35, April 13, 2021 | Updated: 19:28, June 4, 2023
Egypt seizes Suez ship pending US$900m compensation
By Bloomberg

This satellite imagery released by Maxar Technologies shows a close up overview of the MV Ever Given container ship and tugboats in the Suez Canal on March 29, 2021. (PHOTO / AFP)

An Egyptian court issued a seizure order for the ship that blocked the Suez Canal last month after a request from the waterway’s operator, which is demanding US$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

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.

READ MORE: Suez Canal blockage spurs transportation debate

The SCA has said compensation is needed to cover losses linked to transit fees, damage to the waterway during the dredging and salvage efforts, and the cost of equipment and labor. It has calculated that losses of revenue amounted to about US$15 million a day.

Calls placed to the SCA weren't answered.

A spokesman for the 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.

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