Egyptian authorities confiscated a huge cargo ship that blocked the Suez Canal last month, the head of the channel and a judicial official said on Tuesday. The ship was confiscated amid a financial dispute with its owner.
Lieutenant General Osama Rabie said he would not be allowed to leave the country at the huge Ever done until an amount of compensation was resolved with the Japanese owner of the ship, Shoei Kisen Kaisha Ltd.
“The ship is now officially confiscated,” he told state television in Egypt last Monday. “They don’t want to pay anything.”
There was no immediate comment from the boat owner.
Rabie did not say how much money the channel authority was looking for. However, a court official said he demanded at least $ 900 million. The state-run Ahram newspaper also reported $ 900 million.
This amount takes into account the recovery operation, the stopped traffic costs of the channel and the loss of traffic rates during the week that Ever Give blocked the channel.
The official said the order to confiscate the ship was issued on Monday by a court in the city of Ismailia, on the Suez Canal, and that the ship’s crew was informed on Tuesday.
He said Ismailia prosecutors also opened a separate investigation into what led to the blockade of the given Army. The official spoke on condition of anonymity because he was not allowed to report to the media.
Rabie said negotiations were still ongoing to reach an agreement on compensation.
He warned last week in an interview with The Associated Press that bringing the case to court would be more detrimental to the boat owner than agreeing with the canal management.
The disputes could be complex, as the ship is owned by a Japanese company, operated by a Taiwanese ship and flagged in Panama.
The Panama-flagged ship carrying about $ 3.5 billion in cargo between Asia and Europe ran aground on March 23 in the man-made narrow canal that divides mainland Africa from the Sinai Asian peninsula.
The ship had crashed on the edge of a one-lane section of the canal about 3.7 kilometers north of the southern entrance, near the city of Suez.
On March 29, rescue teams released the Ever Give, ending a crisis that had clogged one of the world’s most vital waterways and stopped billions of dollars a day in maritime trade. Since then, the ship has slowed in the great Egyptian bitter lake, just north of where it previously blocked the canal.
The unprecedented six-day shutdown, which raised fears of prolonged delays, a shortage of goods and rising costs for consumers, added pressure to the shipping industry, which was already under pressure from the coronavirus pandemic.
Rabie, the head of the channel, told state television that the authority of the channel did not commit any wrongdoing. He refused to argue possible causes, including the speed of the boat and the strong winds that hit it during a sandstorm.
When asked if the boat owner was guilty, he said, “Of course, yes.”
Rabie said the conclusion of the authority’s investigation was expected on Thursday.