Egypt seeks compensation for Suez incident

Egyptian media reported April 1 that the government in Cairo would seek more than $1bn in compensation for losses from the blockade in the Suez Canal and the refloating of container vessel Ever Given.

Egyptian daily al-Ahram reported that Osama Rabie, the chairman of the state-owed Suez Canal Authority, was seeking to recover damages from the near week-long blockade.

High winds caused Ever Given to wedge in the Suez on March 23, delaying maritime deliveries of oil, natural gas and general cargo. Tugs and excavators managed to free the vessel March 29. The Panamanian-flagged vessel, chartered by the Evergreen line, is parked at a staging area in Bitter Lake while it undergoes inspection.

Rabie added the compensation estimate includes reimbursements for the equipment used to free the vessel.

The Suez handles roughly 10% of the global shipments of oil and LNG. The Suez authority estimated that, at its peak, some 420 or so vessels were stuck in the traffic jam.

On March 31, the SCA stated that traffic was flowing in both directions through the Suez Canal.

Evergreen had no statement on the SCA’s compensation announcement. The ship’s owner, Japan’s Shoei Kisen Kaisha, has since apologised for the incident.

“We hereby express our gratitude to the great cooperation by the Suez Canal Authority, the salvage company and other parties concerned in respect of this accident,” the Japanese company said March 29.