Egypt seizes the Evergreen ship as compensation for the Suez Canal

Egypt seizes the Evergreen ship as compensation for the Suez Canal

(CNN Business) – Last month, the Egyptian authorities detained a huge cargo ship that closed the Suez Canal for about a week amid a dispute over financial damages.

An Egyptian court ordered the ship’s Japanese owner, Shwe Kisen Keisha, to pay $ 900 million in compensation for the losses he suffered when the accident occurred. Ever Given, which carries the flag of Panama, has banned sea traffic from passing through the waterway vital to world tradeThe official Al-Ahram newspaper said on Tuesday.

Al-Ahram reported that the exorbitant bill also includes maintenance fees and the costs of the rescue operation.

An international rescue operation works 24 hours a day to get the ship off the banks of the canal, intensifying both urgency and global concern with each passing day, as ships from all over the world, carrying vital fuel and cargo, were unable to enter the ship. Channel.

Ever Given was successfully repurposed on March 29 and taken to the nearby Great Bitter Lake to be inspected for seaworthiness and to allow repairs to be made. A crew of 25 Indians is still on board.

Shwe Kesen Keisha said insurance companies and lawyers are working on the compensation claim, and he declined to comment further.

The ship’s technical director, Bernard Schulte Ship Management (BSM), said on Wednesday that it had been announced that the vessel was safe for transit to Port Said in the Mediterranean, but had been detained due to a dispute between the Suez Canal Authority (SCA) and the boat. friends.

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Look: Egypt is asking the owner of the ship that got stuck in the Suez Canal for $ 900 million

“The SCA’s decision to stop the vessel is extremely disappointing,” BSM CEO Ian Beveridge said in a statement. “From the start, BSM and the crew on board have cooperated fully with all authorities, including the Securities and Commodities Authority and their grounding investigations … The main objective of BSM is to quickly resolve this issue that would allow the ship and crew from the Suez Canal,” he added.

UK Club, one of Ever Given’s insurers, said on Tuesday it had responded to the Securities and Commodities Authority’s $ 916 million request, and questioned its basis.

“Despite the size of the claim, which was largely unsupported, the owners and their insurance companies were negotiating in good faith with the Securities and Commodities Authority. On April 12, a generous and thoughtful offer was made to the Securities and Commodities Authority to resolve its claim.”

The UK Club says it’s Ever Given’s insurer has some third-party responsibilities, including disruption claims or infrastructure issues, but it is not the insurance company for the vessel itself or the cargo.

His statement went on to explain why the UK club believed the size of the lawsuit was invalid.

“The Securities and Commodities Authority has not provided a detailed justification for this unusually large claim, which includes a $ 300 million claim for a“ ransom bond ”and a $ 300 million claim for“ loss of reputation. ”The grounding caused no pollution or injuries. The ship again after six days and the Suez Canal soon resumed commercial operations The UK club’s statement said the lawsuit filed by the Securities and Commodities Authority also does not include the professional rescuer’s claim for their rescue services, which owners and helmet insurance companies expect to receive separately.

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The Suez Canal Authority stated that the ship’s shipment had been seized until the dispute was resolved.

More than 400 ships were blocked from the crucial shipping lane when the Everglades ran aground on March 23. The Egyptian authorities are still investigating separately the circumstances that led to this situation.

Chris Lyakos contributed to this report.

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