News

Egypt Impounds Ever Given Ship Over Suez Canal Compensation Dispute

mm
Egypt Impounds Ever Given Ship Over Suez Canal Compensation Dispute

Image Credit: Mohamed Elshahed via AP News

The Ever Given, the ship which blocked the Suez Canal last month for a period of six days, has been impounded by the Egyptian authorities in the wake of a financial dispute with the ship’s owners.

Head of the Suez Canal Authority Osama Rabie stated that the Ever Given would not be permitted to leave Egypt until a compensation agreement was reached with the vessel’s Japanese owner, Shoei Kisen Kaisha Ltd. The impounding came after a local court order allowing Egyptian authorities to hold the ship.

According to AP News, when Rabie was asked if the ship’s owner was at fault he agreed, stating “Of course, yes.”

He declared in a television interview that “the ship is now officially impounded,” and in regards to the compensation dispute said the ship’s owners “do not want to pay anything.”

Earlier this month Rabie announced that Egypt aims to claim more than USD $1 billion in compensation following the incident, claiming that compensation is necessary not only for the revenue lost from toll payments of ships that were unable to pass through the canal, but also for the costs of tugboats and other specialist equipment used in the operation to free the ship.

“It is the right of Egypt to be compensated,” he explained in a phone interview with the Egyptian television Sada el-Balad. “We will not forfeit our right.”

These updates follow news that the owner of the Ever Given has filed a lawsuit against its Taiwanese operator, Evergreen, as reported by The Lawyer earlier this month.

The Ever Given, a so-called ‘megaship’, was enroute from China to the Netherlands when it became lodged sideways across the canal, blocking one of the world’s most critical trade routes.

It was freed six days later after a rescue operation involving tugboats, dredgers and a Dutch specialist team. It was initially believed to be strong winds and low visibility from a passing sandstorm that caused the crisis, but an investigation is currently underway to determine exactly how the ship became stuck.

The blocking of the Suez Canal had caused more than 300 ships to be stranded on both sides of the Suez Canal, resulting in global economic losses. According to the Suez Canal Authority, more than USD $9 billion of goods a day were being blocked from moving through the Suez Canal, with Egypt losing at least USD $14 million in revenue a day.

Bus and Truck Collision in Egypt's Assiut Kills 20
Cairo Citadel’s Iftar Cannon Goes off for First Time in 30 Years

Subscribe to our newsletter


News
mm

Olivia is currently studying in Cairo as part of her undergraduate degree in Middle Eastern Studies at the University of Cambridge. She has worked on a number of student-run publications, such as Varsity and The Cambridge Language Collective, and is passionate about exploring Egyptian culture, history and society through journalism.

More in News

Egypt to Develop 21 Desalination Plants in First Phase of Multibillion-Dollar Green Programme

Mona Abdou2 December 2022

Festivals Associated with the Journey of the Holy Family Now UNESCO Heritage

Mona Abdou1 December 2022

‘The Palestinian Cause Will Always Remain the Number One Arab Issue’: Sameh Shoukry

Marina Makary30 November 2022

Turkey, Egypt to Resume Diplomatic Relations and Hold Ministerial Meetings

Egyptian Streets29 November 2022

Egyptian Actress Menna Shalaby Released on Bail Over Suspected Drug Use

Egyptian Streets26 November 2022

Rainbow Colours Now Allowed at Qatar World Cup for Welsh Fans

Mona Abdou25 November 2022

Egypt Invited to Participate in Intergovernmental G20 Summit

Mona Abdou25 November 2022

Egyptian Parliament Health Committee Members to Donate Organs After Death

Egyptian Streets24 November 2022