In this photo released by Suez Canal Authority, the Ever Given, a Panama-flagged cargo ship, is pulled by one of the Suez Canal tugboats, in the Suez Canal, Egypt, Monday, March 29, 2021. (Suez Canal Authority via AP)

Egypt expects $1 billion in damages over stuck ship in Suez

The ship and its cargo will not be allowed leave Egypt if the issue of damages goes to court, says top canal official

Egypt is expecting more than $1 billion in compensation after a cargo ship blocked the Suez Canal for nearly a week, according to the top canal official. He also warned the ship and its cargo will not be allowed leave Egypt if the issue of damages goes to court.

Lt. Gen. Ossama Rabei, head of the canal authority, said in a phone interview with a pro-government TV talk show on Wednesday that the amount takes into account the salvage operation, costs of stalled traffic, and lost transit fees for the week that the Ever Given had blocked the Suez Canal.

“It’s the country’s right,” Rabei said, without specifying who would be responsible for paying the compensation. He added that in the past, canal authorities and the ship’s owners have had a good relationship.

The massive cargo ship is currently in one of the canal’s holding lakes, where authorities and the ship’s managers say an investigation is ongoing.

On Thursday, the ship’s technical managers, Bernard Schulte Shipmanagement, said in an email to The Associated Press that the ship’s crew was co-operating with authorities in their investigation into what led to the vessel running aground. They said that Suez Canal Authority investigators have been given access to the Voyage Data Recorder, also known as a vessel’s black box.

Rabie also said that if an investigation went smoothly and the compensation amount was agreed on, then the ship could travel on without problems.

However, if the issue of compensation involved litigation, then the Ever Given and its some $3.5 billion worth of cargo would not be allowed to leave Egypt, he told the show’s host.

Litigation could be complex, since the vessel is owned by a Japanese firm, operated by a Taiwanese shipper, and flagged in Panama.

On Monday, a flotilla of tugboats helped by the tides, wrenched the Ever Given’s bulbous bow from the canal’s sandy bank, where it had been firmly lodged. The tugs then guided the Ever Given through the water after days of unsuccessful attempts to dislodge the colossus that had captivated the world, drawing scrutiny and social media ridicule.

The Ever Given had crashed into a bank of a single-lane stretch of the canal about 6 kilometres (3.7 miles) north of the southern entrance, near the city of Suez. That forced some ships to take the long, alternate route around the Cape of Good Hope at Africa’s southern tip — a 5,000-kilometre (3,100-mile) detour that costs ships hundreds of thousands of dollars in fuel and other costs. Others waited in place for the blockage to be over.

The unprecedented shutdown, which raised fears of extended delays, goods shortages and rising costs for consumers, added to strain on the shipping industry, already under pressure from the coronavirus pandemic.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

(Black Press files)
Chief Civilian Director Ronald J. McDonald, QC reviewed the evidence and determined reasonable grounds exist to believe in officer may have committed offenses. (Black Press files)
Crown considering charges against Williams Lake Mountie after high-speed pursuit: police watchdog

IIO says the man, who was arrested, sustained serious but not life-threatening injuries from the incident

An RCMP cruiser flashes its light as it speeds up Highway 97. (Patrick Davies photo - 100 Mile Free Press)
Officers suffer minor injuries after a fight with a prohibited driver

The 44-year-old man resisted arrest and shoved an officer to the ground

B.C's COVID-19 dashboard shows the peaks and valleys of cases prior to the record daily report of 132 on April 9, 2021. (Dashboard image)
Interior Health has record day of COVID-19 cases

132 cases reported Friday, April 9, more deaths in Vernon hospital outbreak

Ken Jensen is launching a campaign to keep access to his audio library books. (Photo submitted).
White Cane Club president lobbies to preserve audio book access

Ken Jensen is urging others to send letters to federal government to preserve funding for CELA.

Sarah Smith is a bereavement worker with 100 Mile Hospice. (Kelly Sinoski - 100 Mile Free Press).
‘Grief never goes away’: Hospice seeks to add programs

Growing demand for bereavement services in the South Cariboo region.

B.C. Health Minister Adrian Dix and Premier John Horgan describe vaccine rollout at the legislature, March 29, 2021. (B.C. government)
1,262 more COVID-19 infections in B.C. Friday, 9,574 active cases

Province’s mass vaccination reaches one million people

Tyson Ginter, 7, is proud of his latest Hot Wheels he recently received by Quesnel RCMP Const. Matt Joyce. (Photo submitted)
B.C. Mountie handing out toy cars to light up children’s faces

‘A lot of times it will be the only interaction they have with the police,’ says Const. Matt Joyce

Chief Public Health Officer Theresa Tam speaks during a technical briefing on the COVID pandemic in Canada, Friday, January 15, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Canada’s ICUs see near-record of COVID-19 patients last week as variant cases double

Last week, Canadian hospitals treated an average of 2,500 patients with COVID-19, daily, up 7% from the previous week

University of Victoria rowing coach Barney Williams at the University of Victoria in Victoria, B.C. THE CANADIAN PRESS/Chad Hipolito
UVic, women’s rowing coach deny former athlete’s allegation of verbal abuse

Lily Copeland alleges coach Barney Williams would stand close to her and speak aggressively in the sauna

Librarian Katie Burns with the Fraser Valley Regional Libraries poses for a photo in Chilliwack on June 18, 2019. Monday, April 12, 2021 is Library Workers’ Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of April 11 to 17

Library Workers Day, That Sucks! Day, and Wear Your Pyjamas to Work Day are all coming up this week

A large illuminated heart was installed on the roof of the Vernon Jubilee Hospital May 1, 2020. (VJH Foundation photo)
Three deaths linked to COVID-19 outbreak in Vernon hospital

Interior Health reports two additional deaths at VJH

Robinson Russ, 37, was fatally stabbed on April 4, according to a statement from police. THE CANADIAN PRESS/Darryl Dyck
Vancouver police name victim following city’s fourth homicide of 2021

Robinson Russ, 37, was fatally stabbed Sunday in the Downtown Eastside

A man wears a face mask past the emergency department of the Vancouver General Hospital. (THE CANADIAN PRESS/Jonathan Hayward)
Calls for stricter action in B.C. as COVID-19 variants projected to climb

Jens von Bergmann says the province has taken a ‘wait and see’ approach when early action is needed

Most Read