STOCK MARKET BSE NSE

Suez Canal blockade: Megaship MV Ever Given's owner haggles over USD 900 million release demand

Maritime data company Lloyd's List said the blockage by the vessel, longer than four football fields, held up an estimated USD 9.6 billion-worth of cargo between Asia and Europe each day it was stuck.

Published: 14th April 2021 01:45 PM  |   Last Updated: 14th April 2021 01:45 PM   |  A+A-

MV Ever Given, a Panama-flagged cargo ship, is seen in Egypt's Great Bitter Lake

MV Ever Given, a Panama-flagged cargo ship, is seen in Egypt's Great Bitter Lake. (File photo| AP)

By AFP

TOKYO: The Japanese owner of a megaship seized after blocking the Suez Canal has said it is negotiating with Egyptian authorities after they demanded USD 900 million in compensation for its release. The 200,000-tonne MV Ever Given got diagonally stuck in the narrow but crucial global trade artery in a sandstorm on March 23, triggering a mammoth six-day-long effort to dislodge it.

Maritime data company Lloyd's List said the blockage by the vessel, longer than four football fields, held up an estimated USD 9.6 billion-worth of cargo between Asia and Europe each day it was stuck. Egypt also lost between USD 12 and USD 15 million in revenues for each day the waterway was closed, according to the canal authority.

The MV Ever Given was later seized "due to its failure to pay USD 900 million" compensation, Suez Canal Authority chief Osama Rabie was quoted as saying by the state-run Al-Ahram newspaper. Its fate is "now... in the legal arena", a spokeswoman for the ship's owner Shoei Kisen Kaisha told AFP Wednesday.

An unnamed spokesperson was also quoted by Japan's Jiji Press agency as saying the firm was "at odds with the canal authority in talks over the appropriate amount (of compensation)" but that discussions were ongoing.

The Japanese-owned, Taiwanese-operated and Panama-flagged ship was moved to unobstructive anchorage in the canal after it was freed on March 29, and tailbacks totalling 420 vessels at the northern and southern entrances to the canal were cleared in early April.

The compensation figure was calculated based on "the losses incurred by the grounded vessel as well as the flotation and maintenance costs" Rabie said, citing  a ruling handed down by the Ismailia Economic Court in Egypt. 

The grounding of the ship and the intensive salvage efforts are also reported to have resulted in significant damage to the canal. The Suez Canal earned Egypt just over USD 5.7 billion in the 2019/20 fiscal year, according to official figures -- little changed from the USD 5.3 billion earned back in 2014.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp