Lately, an Egyptian court has rejected an appeal by the owner of the mega container ship that has been impounded by SCA for blocking the channel for nearly a week in March 2021.
The SCA said the vessel would not be allowed to leave the country until a compensation amount is settled on with the vessel’s Japanese owner, Shoei Kisen Kaisha.
A court in Ismailia had ordered the seizure of the vessel. The Ever Given’s owner filed an appeal on April 22 in hopes of overturning the decision.
The SCA has demanded US$916 million in compensation that covers salvage operation, costs of stalled canal traffic and lost transit fees for the week the Ever Given blocked the canal.
Negotiations between the SCA and the ship owner were still ongoing to settle the compensation claim. Shoei Kisen said it has notified a number of the owners of the approximately 18,000 containers on the ship to assume part of the damages demand.
The Ever Given was on its way to the Dutch port of Rotterdam and on 23rd March 2021 it slammed into the bank of a single-lane stretch of the canal about 6 kilometers north of the southern entrance, near the city of Suez.
A massive salvage ended the crisis after six days, allowing hundreds of waiting ships to pass through the Canal.
The blockage of the canal forced some ships to take the long alternate route around the Cape of Good Hope at Africa’s southern tip, requiring additional fuel and other costs. Hundreds of other ships waited in place for the blockage to end.
In a statement, Osama Rabie, the SCA chairman, expressed hopes that a solution acceptable to all parties will be found.
“The Authority is dealing with all the specific requirements of the negotiation with complete flexibility, in full respect for international norms in these sorts of situations,” Rabie said.
Rabie denied claims that the ship’s crew had been arrested, and said that the authority has no objection to crew members leaving or being replaced, provided that a sufficient number of sailors needed to secure the ship is present. He said that the ship’s captain needs to be present as the guardian of the vessel and its cargo.
The ship’s protection and indemnity insurer, UK Club, and its technical manager, Bernhard Schulte Shipmanagement (BSM), have said they were disappointed that the ship was being held.
UK Club has filed an appeal in an Egyptian court against its detention, citing a lack of supporting evidence for the SCA’s claim.
Suez Canal chiefs on Tuesday implemented an Egyptian court order to seize the giant cargo ship that blocked the waterway for almost a week in March.
“On April 12, a carefully considered and generous offer was made to the SCA to settle their claim. We are disappointed by the SCA’s subsequent decision to arrest the vessel today.”
Reinsurers are set to foot most of the bill for the grounding of the ship that halted traffic in the Suez Canal, industry sources said, with payouts expected to run into hundreds of millions of dollars.
Analysts at DBRS Morningstar said that total insured losses “will remain manageable given the relatively short period of time that the canal was blocked.”
Lloyd’s of London last week said the incident would likely result in a “large loss” for the commercial insurance and reinsurance market of at least US$100 million.
