Over two weeks since the Suez Canal blockage has been cleared and normal operations have resumed in one of the world's busiest waterway, Ever Given, has not left the waters there amid compensation dispute with Egyptian authorities.
State-run Al Ahram news said Egyptian authorities seized the massive cargo ship and want the vessel's Japanese owner, Shoei Kisen Kaisha, to pay US$900 million for the damages brought when the 20,000 TEU-class container ship ran aground and became lodged sideways across the waterway on March 23 temporarily halting navigation through the canal.
Al Ahram noted that the hefty bill includes maintenance fees and costs related to the rescue operations to refloat the boat — it took at least six days to free the boat — with officials of the Suez Canal Authority (SCA) earlier announcing that the ship was successfully dislodged from the banks of the canal on March 29.
Currently Ever Given remains idle in the Great Bitter Lake, a wide stretch of water halfway between the north and south ends of the canal, where investigations are ongoing as well as inspections for seaworthiness and subsequent repairs will be carried out.
Osama Rabie, chairman of the SCA, said on Egyptian state television that the country will hold onto the ship while it pursues the investigation "and until the
ship's owner pays" for the damages.
"The announcement was made on Tuesday by Osama Rabie ... who said the figure covers the cost of refloating and maintaining the skyscraper-sized vessels under a lien order issued by the Ismailiya economic court, according to Ahram Arabic news website," Ahram reported.
The Panama-flagged Ever Given, is said to be carrying more than US$3.5 billion worth of cargo. It was deployed on the China-Rotterdam route.
"In a TV comment to state-owned Channel 1 on Monday evening, Rabie said the investigation is expected to conclude by Thursday, unlike the negotiation process with the shipowner's insurance providers, which he said involves "many details," Egypt's state-run publication added.
"The shipowner, he added, is contesting 90% of the required sum, saying "they do not want to pay anything," it said.
Meanwhile, Shoei Kisen Kaisha said its insurance companies and legal team are working on the compensation claim and refused to make further comments.
"Extraordinarily large claim"
Nonetheless, UK Club, the protection and indemnity insurer for Ever Given, questioned the basis for the huge compensation claim.
"We are disappointed by the SCA’s subsequent decision to arrest the vessel. We are also disappointed at comments by the SCA that the ship will be held in Egypt until compensation is paid, and that her crew will be unable to leave the vessel during this time," it said.
Ever Given has 25 Indian crew at the time of the incident.
"Despite the magnitude of the claim which was largely unsupported, the owners and their insurers have been negotiating in good faith with the SCA. On 12 April, a carefully considered and generous offer was made to the SCA to settle their claim," it said in a statement.
"The SCA has not provided a detailed justification for this extraordinarily large claim, which includes US$300 million claims for a 'salvage bonus' and a US$300 million claim for 'loss of reputation.' The grounding resulted in no pollution and no reported injuries. The vessel was re-floated after six days and the Suez Canal promptly resumed their commercial operations," it added, noting that the claim presented by the SCA also "does not include the professional salvor's claim for their salvage services which owners and their hull underwriters expect to receive separately."
More than 400 ships were blocked from passing through the crucial shipping lane when the Ever Given ran aground on March 23. The circumstances that led to the situation are still being probed separately by Egyptian authorities.
Earlier, the SCA said around 422 ships were affected by the incident when Ever Given blocked the waterway in both directions. Authorities imposed a temporary suspension of navigation through the Suez Canal last March 25.
Evergreen confirms "arrest" of Ever Given
In a statement on April 14, Evergreen confirmed reports about the impoundment of the containership by Egyptian authorities.
"Evergreen was informed by the Japanese shipowners of M.V. Ever Given today (14th April) that the Vessel had already been officially arrested by the Court in Egypt on April 13, 2021. In accordance with the information from U.K. P&I Club, the protection and indemnity insurer for the Vessel, the shipowners received a claim from Suez Canal Authority for the sum of US$ 916 million on April 7, 2021, to cover losses during Ever Given’s grounding in the Suez Canal," the Taiwanese shipping firm said.
It confirmed that the amount "includes a US$ 300 million claim for salvage bonus and a US$ 300 million claim for loss of reputation and so on."
"During the meeting between the shipowners and SCA on April 12, 2021, no consensus was reached as SCA’s claims are largely unsupported and lack any detailed justification. The following day (13th April), SCA immediately filed an application to arrest the Vessel and this has been granted by the Court," it added. "In order to lift the arrest order as soon as possible, Evergreen is urging all concerned parties to facilitate a settlement agreement to be reached."
"Meanwhile, Evergreen is investigating the scope of such a court order and studying the possibility of the Vessel and the cargo on board being treated separately," the shipping line added. "Evergreen assures to do its utmost to complete the mission entrusted by its customers with all due dispatch and to keep all adverse impacts to minimal level."
