Egypt authorities impound Ever Given & seek $900m compensation

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The Ever Given, the massive container ship that blocked the Suez Canal for nearly a week in March has been impounded by the authorities in Egypt as they seek more than $900 million (€751.6 million) in compensation from its Japanese owners.

The vessel was seized on the orders of an Egyptian court, as negotiations over who pays for the losses that resulted from the blockage continued between the Suez Canal Authority (SCA), which operates the important waterway, and the Ever Given's owner and insurers.

Last week, the SCA made a claim for $916 million, according to the UK P&I, the insurer covering the owner, Japan's Shoei Kisen Kaisha, against third-party liabilities.

Read more: Ever Given freed from Suez Canal

On Monday, in an interview with Egyptian television, the head of the SCA, Osama Rabie, said that the investigation into what caused the incident would be concluded today but that negotiations over compensation would continue.

Referring to the Ever Given owner's attempts to reduce the size of the bill by 90%, Rabie said: "They don't want to pay anything."  

The compensation covered the costs of the rescue, as well as delay costs and damages to both the canal and the equipment, he said, adding that the waterway had "suffered enormous damages and we made no mistakes."

According to shipping industry analysts quoted in the FT, the SCA puts two pilots on vessels to aid navigation of the canal.

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UK P&I said that a counteroffer had been made that was "carefully considered and generous" and that it was "disappointed by the SCA's subsequent decision to arrest the vessel".

The insurer added that "fair and swift resolution of this claim to ensure the release of the vessel and cargo and, more importantly, her crew of 25 who remain on board."

The owner Shoei Kisen Kaisha confirmed yesterday the vessel had been impounded but refused to add any further comment aside from the fact that it would act in accordance with local law.

The Taiwanese operator of the 220,000-tonne Ever Given, Evergreen Marine, said that the SCA claims were "largely unsupported and lack any detailed justification."

 "Evergreen is urging all concerned parties to facilitate a settlement agreement," the company added.

The vessel is impounded ion the Great Bitter Lake section of the Suez Canal, where traffic can pass.

According to UK P&I, the SCA claim includes $300 million for "loss of reputation", which the insurer disputes, and a $300 million "salvage bonus".

It added: "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."

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Last month, Shoei Kisen sent a letter to owners of cargo aboard the Ever Given, to declare so-called general average, it was reported by one cargo owner. General average is an old maritime law requiring all parties with a stake in a voyage to share losses proportionally.

Cargo owners or their insurers would therefore pay an amount dependent on the value of their cargo on board the vessel as opposed to the number of containers.

One cargo owner was quoted by the FT as saying that a fast resolution was not expected. "I've told my customers to plan for a life without that cargo in the medium-term."

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