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

President of the West Coast Fine Arts Show, Brian Croft, said pandemic restrictions necessitated a shift to an entirely online event this year, running until April 30. (File photo)
The West Fine Art Show shifts to an online-only event amid tighter health orders

Website version retains the flavour of the annual live exhibition

A vaccine-filled needle awaits injection, during a COVID-19 vaccination clinic held Jan. 15, 2021 at Amica White Rock. Community Living B.C.-funded workers learned April 8 that they, too, can now be vaccinated. (Tracy Holmes file photo)
Support workers for those with disabilities given vaccine priority

News shared with Community Living B.C.-funded staff on April 8

British Columbia Attorney General David Eby. (Photo: THE CANADIAN PRESS/Darryl Dyck)
Attorney General covers housing, homelessness and justice reform in Surrey Zoom

‘I think it would be really great to hold some sessions in Surrey,’ Eby says of legislative assembly

Scott Wheatley stands with the main Kenyan and Ugandan umpiring crew that he trained at the Nakirebe Complex outside of Kampala in 2020. Wheatley, a member-at-large with Softball B.C. is supporting a recent open letter from the sporting body that calls on the government to reinstate gameplay for kids in organized sports. (Photo: Submitted)
Softball B.C. urges provincial health officer to lift ban on gameplay for kids in organized sports

Sporting body sent open letter to both Bonnie Henry and Adrian Dix

Surrey Fire Service is on scene of a fire in the 12300-block of 72A Avenue Saturday morning (April 10). (Photo: Shane MacKichan)
Surrey crews on scene of house fire

It happened in the 12300-block of 72A Avenue

B.C. Health Minister Adrian Dix and Premier John Horgan describe vaccine rollout at the legislature, March 29, 2021. (B.C. government)
1,262 more COVID-19 infections in B.C. Friday, 9,574 active cases

Province’s mass vaccination reaches one million people

The 10-part Netflix series Maid, which is being exclusively shot in Greater Victoria, was filming near Prospect Lake in Saanich last month. (Photo courtesy Fred Haynes)
Province announces $150,000 towards South Island film studio, fulfilling B.C. NDP promise

Investment to fund movie studio feasibility study at Camosun College

Tyson Ginter, 7, is proud of his latest Hot Wheels he recently received by Quesnel RCMP Const. Matt Joyce. (Photo submitted)
B.C. Mountie handing out toy cars to light up children’s faces

‘A lot of times it will be the only interaction they have with the police,’ says Const. Matt Joyce

People stroll through rows of tulips in bloom during the Tulips of the Valley Festival on May 2, 2017. The colourful spring event, now called Chilliwack Tulips, opens on Sunday, April 11, 2021. (Jenna Hauck/ Chilliwack Progress file)
Fraser Valley tulip attraction returns this weekend for 1 month

More than 6.5 million bulbs in all at this year’s colourful Chilliwack Tulips event

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

University of Victoria rowing coach Barney Williams at the University of Victoria in Victoria, B.C. THE CANADIAN PRESS/Chad Hipolito
UVic, women’s rowing coach deny former athlete’s allegation of verbal abuse

Lily Copeland alleges coach Barney Williams would stand close to her and speak aggressively in the sauna

Librarian Katie Burns with the Fraser Valley Regional Libraries poses for a photo in Chilliwack on June 18, 2019. Monday, April 12, 2021 is Library Workers’ Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of April 11 to 17

Library Workers Day, That Sucks! Day, and Wear Your Pyjamas to Work Day are all coming up this week

Robinson Russ, 37, was fatally stabbed on April 4, according to a statement from police. THE CANADIAN PRESS/Darryl Dyck
Vancouver police name victim following city’s fourth homicide of 2021

Robinson Russ, 37, was fatally stabbed Sunday in the Downtown Eastside

Most Read