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

Supporters gather outside GraceLife Church near Edmonton, Alta., on Sunday, April 11, 2021. The church has been fenced off by police and Alberta Health Services in violation of COVID-19 rules. THE CANADIAN PRESS/Jason Franson
Hundreds gather to support Alberta church shut down for ignoring COVID-19 orders

GraceLife Church and its pastor, are charged for holding services that break health restrictions

Asymptomatic testing will now be available for "priority groups" who are most likely to spread the COVID-19 virus to vulnerable or at-risk populations. File photo by THE CANADIAN PRESS
Alberta identifies 1,183 new COVID-19 cases on Sunday

50.5% of all active cases are variants of concern

File photo
A man walks into a Cargill meat processing factory. THE CANADIAN PRESS/Graham Hughes
Alberta meat plant, site of COVID-19 outbreak last year, to get vaccination clinics

Nearly half of the 2,200 workers at the Cargill facility contracted the novel coronavirus and two employees died last April

Grand Chief Wilton Littlechild, left, Grand Chief Arthur Noskey, centre and Chief Aaron Young during a meeting with First Nations Chiefs and Grand Chiefs in Edmonton. THE CANADIAN PRESS/Jason Franson
Alberta must retract Forest Act before it becomes law: Treaty 8 grand chief

‘We are asking (the government) to pull this back and consult with us,’ says Arthur Noskey of Treaty 8 First Nations

A cross made out of hockey sticks at a makeshift memorial is silhouetted against the setting sun at the intersection of a fatal bus crash near Tisdale, Sask., on Monday, April, 9, 2018. A virtual tribute is planned to mark the third anniversary of the Humboldt Broncos bus crash. THE CANADIAN PRESS/Jonathan Hayward
VIDEO: Humboldt Broncos team to be honoured on third anniversary of fatal bus crash

16 people died and 13 were injured when a semi-trailer ran a stop sign into the path of the hockey team’s bus

Chief Public Health Officer Theresa Tam speaks during a technical briefing on the COVID pandemic in Canada, Friday, January 15, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Canada’s ICUs see near-record of COVID-19 patients last week as variant cases double

Last week, Canadian hospitals treated an average of 2,500 patients with COVID-19, daily, up 7% from the previous week

Vancouver’s park board general manager issued a new order Friday restricting tents and other temporary structures from being set up in Strathcona Park after April 30, 2021. THE CANADIAN PRESS/Jonathan Hayward
Vancouver park board issues order to restrict tents in Strathcona Park

The order issued Friday restricted tents and other temporary structures from being set up after April 30

Stettler’s own Renegade Station is kicking off the spring season with a brand new single - to be released April 9th. (Photo submitted)
A brand new single is on the way from Stettler-based band Renegade Station

Free Free Free hits all streaming platforms on April 9th

Foreign Affairs Minister Marc Garneau waits for a virtual meeting to begin with US Secretary of State Antony Blinken in Ottawa, Friday February 26, 2021. THE CANADIAN PRESS/Adrian Wyld
Ottawa mulls exempting more workers from Canada-U.S. border shutdown: Garneau

Canada-U.S. border has been closed to people travelling for vacations and other non-essential visits since March 2020

A worker smooths concrete at a construction site in Toronto on January 16, 2020. THE CANADIAN PRESS/Cole Burston
Economy adds 303,000 jobs in March, unemployment rate falls: Statistics Canada

Figure released this morning outpaced the 259,000 gain seen in February

FILE - This file photo dated July 10, 1947 shows the official photograph of Britain’s Princess Elizabeth and her fiance, Lieut. Philip Mountbatten in London. Buckingham Palace says Prince Philip, husband of Queen Elizabeth II, has died aged 99. (AP Photo/File)
Prince Philip, husband of Queen Elizabeth II, dies at 99

Philip spent a month in hospital earlier this year before being released on March 16

Campbell River city council will continue its 2020 policy of waiving late fees and NSFs. (Mirror File photo)
53% of Canadians teetering the brink of insolvency: survey

A majority of Canadians admit they’re just $200 away from not being able to pay their monthly bills

Alberta Premier Jason Kenney listens as the 2021 budget is delivered in Edmonton Alta, on Thursday, Feb. 25, 2021. THE CANADIAN PRESS/Jason Franson
Kenney faces criticism from doctors, his own caucus, over new COVID-19 health rules

Alberta now has more than 10,000 active cases, about 43 per cent are variants

Most Read