February 8, 2023

Athens News

News in English from Greece

Egyptian authorities arrest ship Ever Given until owners pay nearly $ 1 billion in compensation

Egyptian authorities said they will not release a giant container ship Ever Givenuntil its owners pay nearly a billion dollars in compensation for the chaos the ship has caused. On March 23, it stuck sideways in the middle of the Suez Canal, stopping traffic on one of the busiest trade routes in the world for almost a week.

About it writes Business Insider.

Thus, Lieutenant General Osama Rabi, who heads the Suez Canal Authority, said that the container ship will remain in place until the investigation is completed and compensation is paid.

The almost billion dollars that the Egyptian authorities are demanding should cover the costs of equipment and machinery that were used to clean the canal, and payments to workers. In addition, this money will be used to compensate for the losses that were caused by the almost week-long blocking of the Suez Canal.

How officials calculated the amount of compensation, Rabi did not indicate. For example on data London-based financial firm Refinitiv, Egypt lost only about $ 95 million in transit block fees.

It is also unclear who exactly should pay the compensation. Japan’s Shoei Kisen Kaisha Ltd, which owns the ship, says it has not received formal inquiries from Egypt. And Evergreen Marine Corp., which operates the Ever Given vessel, says it is not responsible for the delayed cargo as it is “covered by insurance.”

Abdulgani Serang, Treasurer General of the National Union of Seamen of India, compared the demand for a billion dollars in compensation to a ransom and statedthat it is not necessary to involve the crew of Ever Given, which is on board while the ship is at anchor, into this situation. There are now 25 Indian sailors there. Serang noted that the crew is currently continuing their work and there is no reason to worry about their supplies, including wages.

It is known that in early April, the Japanese company that owns Ever Given filed a claim for general average ㅡ expenses for the salvage of a vessel or cargo on it. Such losses are apportioned among the parties involved in the operation of the vessel. That is, the risks that something will happen to the ship are distributed to all participants in the order for the delivery of cargo on it. For example, the lawsuit filed by Shoei Kisen Kaisha Ltd lists Evergreen and 15 other defendants.

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