Egypt could ask for up to $ 1 billion in compensation for Suez Canal traffic jam

Egypt might ask around billion dollars in compensation after the container ship Ever Given blocked the Suez Canal for almost a week, with serious consequences for intercontinental maritime traffic.

The canal’s highest authority warned last Wednesday that the ship and its cargo will not be able to leave the country in case the problem reaches the court.

Lt. Gen. Ossama Rabei, head of the channel’s authority, said in a telephone interview with a TV show that the figure includes the cost of the rescue operation, stoppage of traffic and loss of transit charges for the week Ever Given blocked passage on the Suez Canal.

“It is the law of the country,” Rabei said, without specifying who would be responsible for paying the compensation. He added that before the incident, the canal authorities and the shipowners had good relations.

The huge cargo ship currently sits on one of the canal’s lakes as it transports investigated the grounding, according to the authorities and administrators of the ship.

Ever Given technical management company Bernard Schulte Shipmanagement said by email on Thursday The Associated Press that the ship’s crew were cooperating with the authorities in their investigation of the reasons for its failure.

He explained that Suez Canal Authority investigators received access to the trip data recorder, also known as a ship’s black box.

Rabei said if the investigation is carried out without a problem and an agreement is reached on the amount of compensation, the freighter will be able to resume its journey without problems.

However, if the issue of financial compensation goes to litigation, then the Ever Given and its cargo valued at around $ 3.5 billion will not be able to leave Egypt, he told the TV show. .

the disputes can be complex, since the vessel is owned by a Japanese company, operated by a Taiwanese carrier and is under the Panamanian flag.

Last Monday, a fleet of tugs took advantage of the high tide and managed to tear the domed bow of the skyscraper-sized Ever Given from the sandy shore of the canal, where it was located. firmly stuck a week before.

The obstruction has created a massive traffic jam at this vital stage. Consequently, arrested an equivalent of $ 9,000 million a day in global trade, and supply chains already burdened by the coronavirus pandemic have been strained.

Source: agencies