/Egypt Demands $1 Billion Compensation To Release Ever Given Ship Following Suez Canal Blockage
Egypt Demands $1 Billion Compensation To Release Ever Given Ship Following Suez Canal Blockage

Egypt Demands $1 Billion Compensation To Release Ever Given Ship Following Suez Canal Blockage


Egypt Demands $1 Billion Compensation To Release Ever Given Ship Following Suez Canal Blockage

India News.com News Desk

The Suez Canal chief has warned that the Ever Given ship would not be allowed to leave the canal if the issue of damages turns into a legal dispute.
Cairo (Egypt): The Ever Given container ship that was stuck in Suez Canal for almost a week still cannot sail away from the canal until its owners pay compensation to Egypt authorities for the loss caused due to the blockage. Egyptian authorities have asked the owners of Ever Given to pay $1 billion in compensation or else it wouldn’t release the ship. Also Read – Suez Canal Authority Shares Video After Container Ship Ever Given Refloated | Watch
The billion-dollar amount takes into account the salvage operation, costs of stalled traffic, and lost transit fees for the week that the Ever Given blocked the Suez Canal. Also Read – Giant Container Ship ‘Ever Given’ Blocking Suez Canal Set Free After 6 Days, Traffic Resumes. 
The massive cargo ship is currently in one of the Suez Canal’s holding lakes, where authorities and the ship’s managers say an investigation is ongoing. Also, Read – Ship Stuck in Suez Canal Launches Tidal Wave of Memes, Many Are Reminded of ‘Pivot’ Scene From FRIENDS!
The Suez Canal chief earlier said the authorities are negotiating a financial settlement with the owners of the massive vessel. Lt. Gen. Osama Rabie told The Associated Press he hoped talks with Shoei Kisen Kaisha Ltd., the Japanese owner of the skyscraper-sized Ever Given, will conclude without a lawsuit.
“We are discussing with them a peaceful resolution to the matter without resorting to the judiciary,” he said. He maintained that bringing the case before a court would be more harmful to the firm than settling with the canal’s management.
The canal chief said last week the Suez Canal Authority was expecting more than $1 billion in compensation, warning the ship would not be allowed to leave the canal if the issue of damages turns into a legal dispute. He did not specify then who would be responsible for paying the compensation.
Rabie also said Tuesday that investigators have analyzed data from the Voyage Data Recorder, also known as a vessel’s black box, but no conclusion had yet been reached on what led the Ever Given to run aground.
Last week, salvage teams freed the Ever Given, ending a crisis that had clogged one of the world’s most vital waterways and halted billions of dollars a day in maritime commerce.
The Panama-flagged ship that carries cargo between Asia and Europe ran aground on March 23 in the narrow, man-made canal dividing continental Africa from the Asian Sinai Peninsula.
Its bow was touching the eastern wall, while its stern looked lodged against the western wall – an extraordinary event that experts said they had never heard of happening in the canal’s 150-year history.
“The case that we had was complicated and nontraditional, so there should have been a nontraditional solution,” Rabie said.
He said they relied on dredgers to remove sand from underneath the hulking vessel.
Then, a flotilla of tugboats, aided by the tides, wrenched the bulbous bow of Ever Given from the canal’s sandy bank, where it had been firmly lodged.
The unprecedented six-day shutdown, which raised fears of extended delays, goods shortages and rising costs for consumers, added to the strain on the shipping industry already under pressure from the coronavirus pandemic.
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