MV ‘Ever Given’, the mega ship which blocked the Suez Canal for nearly a week has been ‘seized’ on court orders until the vessel owners pay $900 million as compensation, canal authorities said on Tuesday, 13 April, news agency AFP reported.
The 400-metre-long ship got stuck in the Suez Canal on 23 March and was refloated on 29 March after efforts made by international salvage experts and Egyptian personnel.
Based on calculations by Lloyd’s List, traffic stopped on either side by the blockage costs more than 9 billion dollars everyday.
According to the canal authority, Egypt also lost between $12 and $15 million in revenues daily due to the blockage, AFP reported.
The MV "Ever Given was seized due to its failure to pay $900 million" compensation, Suez Canal Authority chief Osama Rabie was quoted as saying by Al-Ahram, a state-run newspaper.
The Japanese-owned, Taiwanese-operated, and Panama-flagged ship was moved to a clear anchorage in the canal’s Great Bitter Lake after it was freed on 29 March.
A source from the Suez Canal Authority also told AFP that negotiations between the Japanese-owned company, insurance firms, and the canal authority were ongoing.
A backlog of about 420 ships was eventually cleared in early April.
Citing a ruling by the Ismailia Economic Court in Egypt, Rabie said that the compensation figure was calculated based on “the losses incurred by the grounded vessel as well as the flotation and maintenance costs.”
Reportedly, the salvage efforts and the grounding of the ship had also resulted in damage to the canal itself.
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)