Egypt seizes ‘Ever Given’ ship pending compensation claim

Cargo vessel that blocked global shipping in the Suez Canal is caught in a legal dispute

This image provided by Maxar Technologies shows the Ever Given cargo vessel that Egyptian authorities impounded after the massive ship blocked the Suez Canal last month, anchored in the northeastern sShow more

The Ever Given cargo vessel was declared suitable and fit to sail for onward passage from the Great Bitter Lake to Port Said, where she would be assessed again before departing for Rotterdam, Bernhard Schulte Ship management (BSM) said in a statement.

A court in the city of Ismailia granted a seizure request regarding the Ever Given at the behest of the Suez Canal Authority (SCA).

The 25 Indian crew members remain on board the ship, which is in the Great Bitter Lake, since being dislodged on March 29. The 400-metre vessel was stuck in the canal for six days, blocking traffic.

Later, two of the crew were allowed to travel back home for urgent personal matters, according to the SCA spokesperson George Safwat.

SCA said on Wednesday that negotiations aimed at reaching an agreement "may take some time".

The SCA has made a $916 million compensation claim against the ship's Japanese owner Shoei Kisen, UK Club, one of its insurers, said.

“Despite the magnitude of the claim, which was largely unsupported, the owners and their insurers have been negotiating in good faith with the SCA,” the statement on Tuesday said.

“On 12 April, a carefully considered and generous offer was made to the SCA to settle their claim. We are disappointed by the SCA’s subsequent decision to arrest the vessel today.

"BSM's primary goal is a swift resolution to this matter that will allow the vessel and crew to depart the Suez Canal."

later, two of the ship's crew were allowed to lea

Taiwan's Evergreen Line, which is the Ever Given's charterer, said separately on Wednesday it was investigating the scope of the Egyptian court order "and studying the possibility of the vessel and the cargo on board being treated separately".

Panama's Luster Maritime and Japan's Higaki Sangyo Kaisha, the vessel's registered owners, have started legal proceedings in London's High Court to open a limitation fund that lawyers say will serve as a cash pool of around $115m to satisfy valid English claims.

Japan's Shoei Kisen is the beneficial, or ultimate, owner of the vessel.

Two SCA sources told Reuters that the owner had offered $100m in response to the Canal’s claim. Shoei Kisen declined to comment.

The SCA’s chief executive, Osama Rabie, speaking to Egypt’s Mehwar TV channel late Tuesday, said the owners and insurers “didn’t say when or what they’ll pay” and had not mentioned specific figures.

Egypt’s move underscores the legal complications following the container vessel’s grounding on March 23, which closed the canal for six days and roiled shipping markets. Logjams are expected to continue in the coming weeks at major ports such as Singapore and Rotterdam because of disruptions to schedules, according to supply-chain data provider project44.