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Egypt may seek compensation of $1 billion for Suez Canal blockage

Canal authority spokesman said blockage of the canal roiled shipping markets


The 400-foot long cargo ship that was stuck in the Suez Canal and caused a ship traffic jam re-floated on March 29. Egypt, where the famous canal is located, says it may seek $1 billion in compensation as blockage of the canal roiled shipping markets.

Vessels blocked due to the grounding of Ever Given ship, resumed their journeys on Monday and the blockage is expected to be cleared in a few days.

Suez Canal Authority chief executive Osama Rabie told Bloomberg that the figure is an estimate of costs including that of dredging mud to reflect the container, transit fees, costs related to labour. It wasn’t specified who the Canal Authority would seek compensation from.

Saying the incident affected Egypt’s reputation, Rabie said, “This country should get its due.” If the matter of compensation went to court, the trial could be held in Egypt, Rabie said.

Mohamed Bahaa, the Ever Given’s agent in Egypt said he doesn’t expect a dispute between his company and the canal authorities. The ship is owned by Japan’s Shoei Kisen Kaisha Ltd. Shoei Kisen is expected to discuss compensation with the Canal Authority.

Suez Canal Authority (SCA) adviser Sayed Sheaysha said experts would board the MV Ever Given to investigate the incident, a BBC report said. The vessel’s technical managers, Bernhard Schulte Shipmanagement, ruled out mechanical failure as a cause for the container being blocked and said that the vessel veered off course due to strong wind.  


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