Ever Given 'stuck', this time over $1.2b compensation claim

CAIRO • A container ship that blocked the Suez Canal for almost a week last month is being held in the waterway as the canal authorities pursue a US$916 million (S$1.2 billion) compensation claim against the Japanese owner.

The Ever Given, owned by Shoei Kisen, has been in a lake separating two sections of the canal since it was dislodged on March 29, as the Suez Canal Authority (SCA) conducts investigations.

Two SCA sources, who declined to be named, told Reuters a court order had been issued for the ship to be held.

Negotiations over the compensation were still taking place, according to one of the sources.

UK Club, the protection and indemnity insurer for the Ever Given, said the claim included US$300 million for a "salvage bonus" and US$300 million for "loss of reputation".

"Despite the magnitude of the claim, which was largely unsupported, the owners and their insurers have been negotiating in good faith with the SCA," UK Club noted in a statement.

"On April 12, a carefully considered and generous offer was made to the SCA... We are disappointed by the SCA's subsequent decision to arrest the vessel today."

Earlier on Tuesday, Mr Yumi Shinohara, deputy manager with Shoei Kisen's fleet management department, confirmed that the canal had made a claim and that the ship had not been given clearance to leave.

The decision could impact its cargo, said Clyde & Co lawyer Jai Sharma. "I anticipate that there will be companies that are going to air-freight cargo replacements," he added.

There was no immediate comment from the SCA but its chairman Osama Rabie said on Egyptian TV last week that the Ever Given would not leave until the investigation was finished and compensation paid.

He added that the canal had borne "great moral damage" as well as shipping fee losses and salvage operation costs.

He had also said he hoped to settle matters amicably.

Results of the SCA's probe are expected by the end of the week, according to sources.

International supply chains were thrown into disarray when the 400m-long Ever Given ran aground on March 23, with 18,300 containers on board.

Specialist rescue teams took six days to free the vessel, delaying the passage of more than 400 ships and causing others to divert around Africa.

Industry sources told Reuters last week that reinsurers were set to foot most of the bill for the grounding.

REUTERS