No Court Decision on Suez Canal’s Claim Over Massive Vessel

An Egyptian appeals court on Sunday said it lacks jurisdiction to consider the Suez Canal Authority's demands to uphold financial claims that led to the seizure of the massive Ever Given ship after it blocked the waterway in March.

The authority and the ship's owner are in dispute as to whose fault it was that the ship ran aground in the canal linking the Mediterranean Sea and the Red Sea — and how much compensation should be paid.

The appeals chamber of the Ismailia Economic Court referred the case to a lower court to decide whether the Ever Given can legally be held until the settlement of the compensation claim between the Suez Canal Authority and Shoei Kisen Kaisha Ltd., the ship's Japanese owner, according to Hazem Barakat, a lawyer representing the vessel's owner.

The Ever Given was on its way to the Dutch port of Rotterdam on March 23 when it slammed into the bank of a stretch of the canal about 6 kilometers (3.7 miles) north of the southern entrance, near the city of Suez.

A massive effort by a flotilla of tugboats, helped by the tides, freed the skyscraper-sized ship six days later, ending the crisis and allowing hundreds of waiting vessels to pass through the canal. The Suez Canal Authority on Sunday revealed for the first time that a salvage boat capsized during the operation, leaving one worker dead.

Since it was freed, the Panama-flagged vessel, which carries cargo between Asia and Europe, has been ordered by authorities to remain in a holding lake midcanal while its owner and the canal authority try to settle the compensation dispute.

At first, the Suez Canal Authority demanded $916 million in compensation, which was later lowered to $550 million, the head of the canal authority, Lt. Gen. Osama Rabie, said in comments Sunday on a television program.

The compensation amount would account for the salvage operation, costs of stalled canal traffic and lost transit fees for the week the Ever Given blocked the canal.

Barakat, the lawyer, said the next court hearing on the case will take place on May 29.

The six-day blockage disrupted global shipment. Some ships were forced to take the long alternate route around the Cape of Good Hope at Africa's southern tip, requiring additional fuel and other costs. Hundreds of other ships waited in place for the blockage to end.

About 10% of world trade flows through the canal, a pivotal source of foreign currency to Egypt. Some 19,000 vessels passed through the canal last year, according to official figures.

Source: Voice of America