Egypt Slashes Compensation on Ever Given from $916m to $550m

SUEZ, EGYPT – MARCH 29: The container ship, the Ever Given,??is seen moving at the Suez Canal on March 29, 2021 in Suez, Egypt. Early Monday, the Suez Canal Authority said the angle of the Ever Given, a huge container ship stuck in the canal, had been corrected by 80 percent. The ship ran aground in the canal last Tuesday, after being caught in 40-knot winds. The Suez Canal is one of the worlds busiest shipping lanes and the blockage has created a backlog of vessels at either end, raising concerns over the impact the accident will have on global shipping and supply chains. (Photo by Mahmoud Khaled/Getty Images)

The head of the Suez Canal Authority Osama Rabie has announced that the Suez Canal Authority engaged in a lawsuit dispute against the container ship Ever Given over compensation, has agreed to reduce the costs of compensation down to $550 million.

He admitted during a phone interview with host Lamis al-Hadidi, “… we reduced the compensation amount by 40 per cent to US$50 million out of US$916 million, with facilities including US$200 million in cash payment, and the rest being $350 million with facilities.”

Rabie remarked that the company owning the ship has failed to appreciate the effort that went into saving the ship. “Frankly, they did not appreciate the effort we did, and the fact that we succeeded in floating the ship in six days without any losses, whether regarding the ship or the human element, and we did not receive the necessary appreciation and understanding from the company that owns the ship for the effort we have made as it offered to only pay $150 million, which is a meager sum. It does not cover the losses caused by its ship.”

He explained that the authority is only looking for compensation for its losses incurred from the disruption to navigation and trade compensation

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