Egypt cuts once again compensation claims for blocking of Suez Canal to $550 mln

Egypt has cut claims by millions of dollars for compensation from owners of the container ship Ever Given that blocked the Suez Canal in March, Suez Canal Authority Chairman Osama Rabie told local television channel on Sunday.

Egyptian authorities had seized the 200,000-tonne MV Ever Given in April and lodged a claim in a local court demanding $916 million from its owner Shoei Kisen Kaisha in compensation for the ship’s release. The claim was later reduced to $600 million.

Rabie explained that the claim had been once again reduced to $550 million.

“After the owners of the ship estimated the costs of the cargo loaded to be around $775 million, we respected this and reduced the (compensation) claim to $550 million,” Rabie said.

The compensation is needed to cover losses of transit fees, damage to the waterway during the dredging and salvage a mammoth six-day-long effort, and for the cost of equipment and labour.

Suez Canal connects the Red Sea and the Mediterranean Sea and is used for more than 10 percent of world trade.

Egypt lost between $12 million and $15 million in revenues for each day the canal was closed due to the blocking, according to SCA figures. The SCA also announced Sunday in a statement that one of its rescue workers had died during the salvage efforts, but it did not provide further details.

An Egyptian court also upheld May 4 decision preventing Ever Given from leaving the country.

Later, a court in Ismailia ruled on Sunday the ongoing case against Shoei Kisen Kaisha would be moved to a more specialised court on May 29.

Earlier this month, Egyptian President Abdel Fattah al-Sisi approved massive expansion of the canal to avoid future blockages.