Egypt cuts compensation claim on Ever Given to $550 million

Usama Rabie, chairman of the Suez Canal Authority, issued a statement on the 25th that the Canal Authority has decided to reduce the amount of its compensation claim against the owner of the Ever Given vessel from the previous 916 million US dollars to 550 million US dollars.

The statement said the Egyptian local court requested the owner of Ever Given to compensate 916 million US dollars based on the estimates of a total value of 2 billion US dollars of goods on board but subsequently agreed to the shipowner’s estimation of a total value of 775 million US dollars, therefore reducing the compensation claim to 550 million US dollars.

It is understood that the compensation proposed by the Canal Administration covers the loss of canal tolls caused by the blockage, the cost of rescue equipment and labor, and the cost of damage to the waterway caused by dredging and salvaging.

The giant container vessel flying the Panamanian flag ran aground across the Suez Canal on March 23 and blocked the entire canal. After several days of rescue, the stranded vessel was un-grounded on March 29. Due to the delay in payment of compensation by the shipowner, Egypt has formally detained the container vessel, and it is still in the berth on the Suez Canal.

The Suez Canal is located at the key point of the intercontinental zone between Europe, Asia, and Africa, connecting the Red Sea and the Mediterranean Sea. The income of the canal is one of the main sources of Egypt’s national fiscal revenue and foreign exchange reserves.

Source: Xinhuanet

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