Egyptian Authorities Impound Ship That Blocked Suez Canal Amid Financial Dispute

Egyptian authorities impounded a massive cargo vessel that blocked the Suez Canal last month, the canal chief and a judicial official said Tuesday. The ship was impounded amid a financial dispute with its owner.  Lieutenant General Osama Rabie said the hulking Ever Given would not be allowed to leave the country until a compensation amount is settled on with the vessel's Japanese owner, Shoei Kisen Kaisha Ltd. "The vessel is now officially impounded," he told Egypt's state-run television late Mo

Wednesday, April 14th 2021, 3:48 am

By: CBS News


Egyptian authorities impounded a massive cargo vessel that blocked the Suez Canal last month, the canal chief and a judicial official said Tuesday. The ship was impounded amid a financial dispute with its owner. 

Lieutenant General Osama Rabie said the hulking Ever Given would not be allowed to leave the country until a compensation amount is settled on with the vessel's Japanese owner, Shoei Kisen Kaisha Ltd.

"The vessel is now officially impounded," he told Egypt's state-run television late Monday. "They do not want to pay anything."

There was no immediate comment from the vessel's owner.

Related Story: Canal Service Provider Says Container Ship In Suez Set Free

Rabie did not say how much money the canal authority was seeking. However, a judicial official said it demanded at least $900 million. The state-run Ahram daily also reported the $900 million figure.

That amount takes into account the salvage operation, costs of stalled canal traffic and lost transit fees for the week that the Ever Given blocked the canal.

The official said the order to impound the vessel was issued Monday by a court in the Suez Canal city of Ismailia, and that the vessel's crew has been informed Tuesday.

He said prosecutors in Ismailia also opened a separate investigation into what led the Ever Given to run aground. The official spoke on condition of anonymity because he was not authorized to brief media.

Rabie said negotiations were still ongoing to reach a settlement on compensation.

Related Story: Plan Made To Refloat Ship Blocking Suez Canal Using Tide

He warned last week in an interview with The Associated Press that bringing the case before a court would be more harmful to the vessel's owner than settling with the canal's management.

Litigation could be complex, since the vessel is owned by a Japanese firm, operated by a Taiwanese shipper, and flagged in Panama.

The Panama-flagged ship that carries some $3.5 billion in cargo between Asia and Europe ran aground March 23 in the narrow, man-made canal dividing continental Africa from the Asian Sinai Peninsula.

The vessel had crashed into the bank of a single-lane stretch of the canal about 3.7 miles north of the southern entrance, near the city of Suez.

On March 29, salvage teams freed the Ever Given, ending a crisis that had clogged one of the world's most vital waterways and halted billions of dollars a day in maritime commerce. The vessel has since idled in Egypt's Great Bitter Lake, just north of the site where it previously blocked the canal.

Related Story: Massive Cargo Ship Turns Sideways, Totally Blocks Suez Canal

The unprecedented six-day 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.

Rabie, the canal chief, told state-run television there was no wrongdoing by the canal authority. He declined to discuss possible causes, including the ship's speed and the high winds that buffeted it during a sandstorm.

When asked whether the ship's owner was at fault, he said: "Of course, yes."

Rabie said the conclusion of the authority's investigation was expected Thursday.

First published on April 13, 2021 / 9:36 PM

© 2021 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.

logo

Get The Daily Update!

Be among the first to get breaking news, weather, and general news updates from News 9 delivered right to your inbox!

More Like This

April 14th, 2021

March 11th, 2024

December 1st, 2023

November 2nd, 2023

Top Headlines

March 29th, 2024

March 29th, 2024

March 29th, 2024

March 29th, 2024