Egypt could seek $1 billion in damages from blockage of the Suez Canal

The Egyptian state-owned Suez Canal Authority (SCA) may seek roughly 1 billion US dollars in compensation for the recent blockage of the Suez Canal by the containership 'Ever Given'. For six days, the ship – sailing under a Panamanian flag for a Taiwanese shipping company – blocked the most vital shipping route between Europe and Asia.

According to Bloomberg, the director of the SCA, Osama Rabie, said that the 1-billion-US-dollar estimate is based on compensation for lost toll fees, damage caused to the canal by dredging and salvaging efforts, and costs of equipment and personnel. Rabie added that the incident has also damaged the reputation of the Egyptian shipping route.

It is unclear which party would be responsible for the compensation sought by the SCA. Maritime lawyers point to the Japanese owner of the Ever Given, Shoei Kisen Kaisha Ltd.

The Taiwanese shipping company, Evergreen Marine Corp, which chartered the container ship, emphasised yesterday (1 April) that it is not responsible for the Ever Given's delayed cargo. The company does not expect to have to pay any compensation.

The Ever Given is now in the Great Bitter Lake – a body of water in the middle of the Suez Canal. Divers there are investigating to what extent the ship has suffered damage and whether it can continue its journey to its final destination, the port of Rotterdam in the Netherlands.

Related: Analysis: Can Arctic routes provide an alternative to the Suez Canal as a major east-west trade route?

Source: commonspace.eu with Bloomberg agencies
Photo: A view shows the container ship Ever Given after the stern was freed and the ship was rotated in the Suez Canal (Suez Canal Authority)

Related articles

Editor's choice
News
Aden under curfew, as problem in Yemen's south deepens

Aden under curfew, as problem in Yemen's south deepens

The port city of Aden, in Yemen's south, has been put under curfew, as the rift in the country between  the Saudi led coalition which  backs Yemen's presidential governing council, and the southern forces led by the Southern Transitional Council (STC), deepens. Abdul Rahman al-Mahrami, a member of the Yemeni Presidential Governing Council and commander of the al-Amalik brigades, has ordered a curfew in the temporary capital, Aden, "to maintain security". "A curfew has been imposed throughout Aden Governorate from 9:00 p.m. to 6:00 a.m., in accordance with the instructions of Commander Abdul Rahman al-Mahrami, a member of the Presidential Management Council," the statement said. It states that only security and military personnel, as well as medical and technical teams with approved permits, will be allowed to move in the area during these hours. Yemen's presidential council, which is backed by Saudi Arabia and which already is in a struggle with the Houthi Movement in the north of the country who also occupy the capital Sanaa, two days ago issued an order for the arrest of the head of the Southern Transitional Council (STC),, Aidarous al Zubaidi. The STC have wide support among people in the South, and advocate that South Yemen restores its independence. The coalition warned of further escalation in Aden, long regarded as an STC stronghold, as the Presidential Leadership Council (PLC) chief accused STC leader Aidarous Al Zubaidi of “high treason” and announced the revocation of his membership in the governing body. The moves mark a sharp escalation in tensions within the anti-Houthi camp, despite National Shield Forces, rivals of the STC and former allies, having recently retaken control of Hadhramaut and Mahra from southern fighters. The STC’s takeover of the two regions last month angered Saudi Arabia and contributed to igniting the current internal conflict. (click the picture to read more)

Popular

Editor's choice
Analysis
Analysis: Why what happens in Greenland matters

Analysis: Why what happens in Greenland matters

The snap elections for the parliament of Greenland last Tuesday (6 April 2021) attracted unusual interest from major powers who have been watching the political and economic impact of the election results on their interests in the Arctic region. Among them, the Chinese, who have invested in the Kvanefjeld mine on the island. Maximiliaan van Lange analyses the background to the recent Greenlandic general elections, and the Island's geostrategic position in the Arctic in this article for commonspace.eu.