Egpt’s Suez Canal Authority has seized the Ever Given megaship, which blocked the Suez Canal for almost a week pending payment for the damages, by its owners.
The Japanese-owned, Taiwanese-operated and Panama-flagged vessel ran aground on March 23, blocking the vital Suez route for trade between Europe and Asia. The cargo ship is yet to be given clearance from the lake off of the canal where it was steered to.
The Suez Canal fetched Egypt over $5.7 billion in the 2019-20 and the canal authority reported that revenue lost during the time that the Ever Given was stuck amounted to $12-$15 million per day.
Suez Canal Authority (SCA) chief Osama Rabie said “The Ever Given was seized due to its failure to pay $900 million” in compensation.
The sum was calculated based on “the losses incurred by the grounded vessel as well as the flotation and maintenance costs, according to a court ruling handed down by the Ismailia Economic Court,” Rabie said.
An unnamed official from the SCA said that negotiations on damages were being held between the vessel’s Japanese owner, insurance firms and the canal authority itself.
Courts ruled that the Ever Given will be held until the full compensation amount is paid, in accordance with Egyptian Maritime law.
It took several days for the backlog of $9.6 billion worth cargo, including oil tankers, to pass through the canal after the Ever Given was dislodged.
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