The legal battle between Egypt and the ship that was stuck in the Suez Canal continues as Egypt insists it will not release the ship until it pays compensation.
Egypt has detained the ship carrying thousands of containers in the Great Bitter Lake since it was floated at the end of March. The Suez Canal Authority wanted $916 million in compensation from the Japanese company Choi Kisen, which owns the ship. However, it reduced the amount to reach an out-of-court settlement. Lieutenant General Osama Rabie, head of the Suez Canal Authority, said that his country would reduce compensation claims from $900 million to $600 million.
The British Protection and Compensation Club, one of the insurance providers of the Ever Given, said that the reduced compensation request is not in line with the content of the lawsuit filed by the Canal Authority. “The owners of the Ever Given have not yet obtained evidence supporting the claim for compensation of this size, which is a claim that remains larger than usual.” The club’s statement pointed out that the representatives of the Ever Given continue to negotiate “in good faith” with the Suez Canal Authority.
According to informed sources, they would like to end the crisis within two or three months. They explained that the authority has provided all that can be provided in terms of reducing financial compensation. Still, it will not give up its right to compensation that caused a global crisis at the time. The sources pointed out that the legal team of the ship are trying to buy more time to reduce compensation to a minimum. “However, what the Suez Canal requested was in return for drilling and suctioning during the ship’s standing, in addition to part of the canal’s losses during the suspension of sailing.” Rabie stated that there is no immediate possibility of reaching a settlement. He said, “We haven’t seen any response from them yet, so we are moving forward with this case, just as we were in court.”
Observers pointed out that efforts to hold the ship responsible will shift the blame from Egypt. An Egyptian economic court is scheduled to hold a session on May 22 to consider the compensation requested by the Canal Authority for losses it says it incurred due to the closure of the canal and the costs of floating the ship.
The sources said that an Egyptian investigation into the accident did not conclude that the authority or its mentors committed errors. A source said that the court might allow the authority to put the vessel up for sale by auction if the owner rejects a ruling that may be issued to compensate the canal authority. Rabih mentioned a similar result as well. An Egyptian court rejected an appeal by Choi Kaisen, the ship’s owner, over the impounding of the vessel, earlier this month.
The incident disrupted shipping markets, as hundreds of ships had to wait for the canal to reopen. The canal authority said compensation was needed to cover losses of transit fees, damage to the waterway during dredging and rescue efforts, and equipment and labour costs. The 400-metre Ever Given is owned by the Japanese company Shwe Kisen Kaisha Ltd., and it was leased by the Taiwanese Evergreen Line when it was suspended at the southern end of the canal for six days. Egypt estimated its daily loss in canal revenues as between $12 and $15 million.
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