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

A new park is under development for the Lower Kootenay Band. Ken White, facility and operations manager, holds up the draft plans with Nasukin Jason Louie on the construction site. (Photo by Kelsey Yates)
Lower Kootenay Band develops plan for new memorial park

The new Kulilu Garden will serve as a memorial for children who died from polio and tuberculosis in the 1930s and 40s

A new Kootenay Farms Food Hub facility will be opening in Creston this fall to support food processing, packaging, and distribution to increase access to additional healthy, local foods in the region. The project is being led by the Fields Forward Society and will use equipment such as the Kootenay Mobile Press (pictured). (Submitted)
Creston’s upcoming food processing facility will allow for new value-added products

With affordable equipment, farmers and growers can create new items like jerky, jam, and juice

COVID-19 numbers continue to rise in the Kootenays. Illustration: BC Centre for Disease Control
Highest weekly number of new COVID-19 cases in 2021 for Nelson

The Nelson local health area had 13 new cases in early April

ANKORS held a small demonstration outside Nelson City Hall and the courthouse Wednesday to mark the five-year anniversary of the province declaring the toxic drug supply crisis. Photo: Tyler Harper
‘We’re all supposed to take care of each other’: 5 years of toxic drug supply crisis marked in Nelson

Over 7,000 people have died in B.C. since the crisis was announced in 2016

Demonstrators at the legislature on April 14 called on the province to decriminalize drug possession and provide widespread access to regulated safe supply across B.C. (Jake Romphf/News Staff)
Rally calls for decriminalization, safe supply on 5th anniversary of overdose emergency declaration

From 2016 to the end of February, 7,072 British Columbians died due to overdose

(Government of Canada)
Liberal MP caught stark naked during House of Commons video conference

William Amos, in Quebec, appeared on the screens of his fellow members of Parliament completely naked

Provincial health officer Dr. Bonnie Henry updates B.C.’s COVID-19 situation at the B.C. legislature, Feb. 1, 2020. (B.C. government)
B.C.’s COVID-19 case count jumps to 1,168 Wednesday, nearly 400 in hospital

Now 120 coronavirus patients in intensive care, six more deaths

Moss covered branches are seen in the Avatar Old Growth Forest near Port Renfrew on Vancouver Island, B.C. Thursday, Sept. 29, 2011. THE CANADIAN PRESS/Jonathan Hayward
B.C. blockades aimed at protecting old-growth forests reveal First Nation split

Two Pacheedaht chiefs say they’re ‘concerned about the increasing polarization over forestry activities’ in the territory

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Richmond RCMP Chief Superintendent Will Ng said, in March, the force received a stand-out number of seven reports of incidents that appeared to have “racial undertones.” (Phil McLachlan/Capital News)
‘Racially motivated’ incidents on the rise in B.C’s 4th largest city: police

Three incidents in Richmond are currently being invested as hate crimes, says RCMP Chief Superintendent Will Ng

A still from the video taken of a violent arrest on May 30, 2020 in downtown Kelowna. (File)
Kelowna Mountie charged with assault for caught-on-camera violent arrest

Const. Siggy Pietrzak was filmed punching a suspected impaired driver at least 10 times during an arrest

A screenshot from a Nuu-chah-nulth healing song and performance created in collaboration between Hjalmer Wenstob and Timmy Masso. (Screenshot from YouTube)
VIDEO: Tla-o-qui-aht First Nation brothers produce COVID-19 healing song

Hjalmer Wenstob and Timmy Masso share dance and inspiration.

Most Read