Egypt Seizes Ever Given, Demands $900M for Suez Canal Blockage
Egyptian authorities have seized the Ever Given containership, which blocked the Suez Canal for almost a week last month, amidst a dispute over financial damages.
Egyptian authorities have ordered the Ever Given’s owner, Japanese chartering company Shoei Kisen Kaisha, to pay $900 million in compensation. The bill includes losses inflicted by the congestions the ship caused, maintenance fees and rescue operation costs, according to Egypt’s state-run news agency Al Ahram.
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The Backstory
On March 29th, 2021, The Ever Given containership was successfully dislodged after blocking the Suez Canal for nearly a week. Because of the blockage, the Suez Canal experienced a congestion of an upwards of 422 ships.
The rescue operation, which required extensive dredging and tugging operations, gained huge global attention with each day that passed, as ships from around the world, carrying vital fuel and cargo, were blocked from entering the canal during the crisis, raising alarm over the impact on global supply chains.
Two Sides to Every Story
CNN reports that UK Club, one of the ship’s insurers, questioned the basis of Egypt’s claim.
“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,” UK Club said in response to the claim from the Suez Canal Authority (SCA).
UK Club’s statement went on to explain why they believes the claim is not valid.
“The SCA has not provided a detailed justification for this extraordinarily large claim, which includes a $300 million claim for a ‘salvage bonus’ and a $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. 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,” the UK Club statement said.
On Wednesday, the ship’s technical managers, Bernhard Schulte Shipmanagement (BSM) reported that the ship had been declared safe for onward passage to Port Said on the Mediterranean Sea, but had been detained because of the dispute between the Suez Canal Authority (SCA) and the vessel’s owners.
The ship’s cargo has been seized until the dispute is resolved, according to the Suez Canal Authority.
With Shipping Demands Being at an All Time High, Timing Couldn’t be Worse
On March 29th, 2021, The Ever Given containership was dislodged after blocking the Suez Canal for nearly a week. 
The Suez Canal, which offers vessels a direct route between the North Atlantic and northern Indian oceans via the Mediterranean Sea and the Red Sea, suffered a blockage which resulted in a congestion of an upwards of 422 ships.
The rescue operation, which required extensive dredging and tugging operations, gained huge global attention with each day that passed, as ships from around the world, carrying vital fuel and cargo, were blocked from entering the canal during the crisis, raising alarm over the impact on global supply chains.
