Suez blockade case postponed to extend compensation negotiations

May, 31, 2021 Posted by Ruth Hollard

Week 202124

Last Saturday, May 29, an Egyptian court postponed the case involving the week-long blockade of the Suez Canal by a cargo ship earlier this year. The aim is to extend the deadline so negotiations can continue on a financial dispute between the Suez Canal Authority and the vessel’s owner.

The issue revolves around the amount of compensation that the channel management is claiming as compensation for having rescued the Ever Given. At first, the entity demanded $916 million in compensation, which was later reduced to $550 million, according to Lt. Gen. Osama Rabie, head of the channel’s port authority. The amount would cover the rescue operation, costs of stopped traffic in the canal, and traffic fees lost in the week that the Ever Given blocked the movement of vessels.

However, the ship’s Japanese owner, Shoei Kisen Kaisha Ltd., and the insurers involved still consider the demand too high. Previously, they had offered $150 million in compensation, but the channel’s management rejected the offer. The Ismailia Economic Court has postponed the hearing until June 20. The decision came after the ship’s owner presented a new offer to settle the dispute out of court, stated an entity responsible for the channel. The document did not provide further information.

The Panama-flagged ship carries cargo between Asia and Europe. Authorities have ordered it to remain on a nearby lake while its owner and the canal authority resolve the compensation dispute. The two sides blame each other for the ship’s stranding.

Source: The Tribune

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