Egypt Suez Canal Authority May Seek $1Bln ‘Ever Given’ Ship Crisis Compensation

Egypt said it may seek around $1 billion in compensation after a
giant container vessel blocked the Suez Canal for almost a week and
roiled shipping markets.

The figure is a rough estimate of losses linked to transit fees,
damage to the waterway during the dredging and salvage efforts, and
the cost of equipment and labor, the Suez Canal Authority’s chief
executive officer, Osama Rabie, said late Wednesday to local
television channel Sada Elbalad.

He did not specify who the Canal Authority would seek
compensation from.

“This is the right of the country,” Rabie said, adding that the
incident hurt Egypt’s reputation. “This country should get its
due.”

The 400-meter-long Ever Given ship, owned by Japan’s Shoei Kisen
Kaisha Ltd., ran aground on March 23 in the southern part of the
canal and was freed six days later.

Taiwan’s Evergreen Marine Corp., the vessel’s charterer, said
Thursday it’s not responsible for delays of any cargo it was
transporting.

“There is almost no chance that we will be sought to pay
compensation,” Evergreen Marine President Eric Hsieh said at a
briefing in Taipei.

Shoei Kisen will discuss compensation with the Canal Authority,
but will refrain from giving details for now, according to a
spokesperson.

Bitter Lake
The ship and its cargo are currently in the Great Bitter Lake,
roughly halfway along the canal.

While they could be held in Egypt if the matter of compensation
goes to court, such a scenario is unlikely, Rabie said.

It may take until Friday night or Saturday to clear the backlog
of hundreds of ships that built up while the canal was shut, Rabie
said in a separate interview with Egyptian television.

Egypt said it may seek around $1 billion in compensation after a
giant container vessel blocked the Suez Canal for almost a week and
roiled shipping markets.

The figure is a rough estimate of losses linked to transit fees,
damage to the waterway during the dredging and salvage efforts, and
the cost of equipment and labor, the Suez Canal Authority’s chief
executive officer, Osama Rabie, said late Wednesday to local
television channel Sada Elbalad.

He did not specify who the Canal Authority would seek
compensation from.

“This is the right of the country,” Rabie said, adding that the
incident hurt Egypt’s reputation. “This country should get its
due.”

The 400-meter-long Ever Given ship, owned by Japan’s Shoei Kisen
Kaisha Ltd., ran aground on March 23 in the southern part of the
canal and was freed six days later.

Taiwan’s Evergreen Marine Corp., the vessel’s charterer, said
Thursday it’s not responsible for delays of any cargo it was
transporting.

“There is almost no chance that we will be sought to pay
compensation,” Evergreen Marine President Eric Hsieh said at a
briefing in Taipei.

Shoei Kisen will discuss compensation with the Canal Authority,
but will refrain from giving details for now, according to a
spokesperson.

Bitter Lake
The ship and its cargo are currently in the Great Bitter Lake,
roughly halfway along the canal.

While they could be held in Egypt if the matter of compensation
goes to court, such a scenario is unlikely, Rabie said.

It may take until Friday night or Saturday to clear the backlog
of hundreds of ships that built up while the canal was shut, Rabie
said in a separate interview with Egyptian television.