Egypt reduces compensation required from Ever Given owners to $600M: SCA chief

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Sat, 08 May 2021 - 02:40 GMT

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Sat, 08 May 2021 - 02:40 GMT

File- Ever Given ship near to the Mashhour dredge at the Suez Canal to refloat the Ever Given- Press photo from the Suez Canal Authority

File- Ever Given ship near to the Mashhour dredge at the Suez Canal to refloat the Ever Given- Press photo from the Suez Canal Authority

CAIRO – 8 May 2021: Egypt’s Suez Canal Authority (SCA) reduced the amount of compensation claims for the damages caused by the grounding of the Panama-flagged Ever Given Ship from $916 million to $600 million, announced the SCA Chairperson Admiral Osama Rabie on Friday.
 
In media remarks to Al Hekaya talk show on MBC Masr channel on Friday, Rabie affirmed that the ship is still kept in the  Great Bitter Lakes in Fayed.
 
 
On March 23, 2021, the Ever Given ship went aground in the 151 km of the Suez Canal, where the vessels in both directions pass, causing the suspension of the international maritime navigation through the canal for six days. After it was freed on March 29, the ship was escorted to the Bitter Lakes for technical inspection, crew interrogation, and black box analysis.
 
Egypt has asked for 916 million in compensation for damages caused by the grounding of the ship, the salvage operation, and for loss of reputation. In a statement issued on April 14, 2021, the operator (Evergreen Line) said that Egypt has asked for $ 916 million, including a “claim for salvage bonus and a US$ 300 million claim for loss of reputation and so on.”
 
However, the Shoei Kisen Kaisha, the Japanese owner of the seized vessel “M.V. EVER GIVEN,” the operator and the insurance company (UK P&I Club) see that the compensation required is very large and since then the negotiations between the SCA and the owners have been conducted. 
 
The situation complicated when an economic court in Ismailia governorate issued on April 13, 2021 a decision to officially arrest the ship until paying $ 916 million in compensation. Later, the owners filed an appeal before the Ismailia court of first instance against a decision of arresting the ship and her cargo. However, the court rejected the appeal.
 
Egyptian business tycoon Naguib Sawiris said in a tweet that the required compensation is exaggerated and unrealistic, saying it is not good in the national interest of the country.
 
 
 
 

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