Egypt seizes the Ever Given, saying its owners owe nearly $1 billion for Suez Canal traffic jam

Even though it was dislodged 2 weeks ago, the Ever Given has still not yet been allowed to leave the Suez Canal. Not only is that the ship and all of it's cargo, but apparently the 25 crew members also remain stuck on board the vessel.

The investigation into who/what actually is responsible for the ship running aground, is still ongoing. Egypt won't allow the ship to leave the canal until someone agrees to pay a $900 million fee.

A few weeks ago, Egypt was frantically trying to get the massive container ship Ever Given out of the Suez Canal.

Now, authorities are saying the vessel is not allowed to leave.

In the latest complication to the ill-fated voyage, Egypt has seized the Ever Given over its owners’ “failure to pay an amount of $900 million,” the state-run news outlet Ahram Gate reported. That amount represents the total compensation that Egypt says it is owed for the six-day blockage of the Suez Canal, including lost revenue from ships that ordinarily would have traveled through the canal during that time, as well as costs for damage to the crucial waterway and the equipment and labor deployed in the 144-hour scramble to free the ship.

Since it was dislodged from the narrow section of the canal where it ran aground in late March, blocking commerce worth billions of dollars, the Ever Given has been anchored in Egypt’s Great Bitter Lake, at the midpoint of the canal. Twenty-five crew members, all Indian nationals, remain stuck on board.

“The vessel will remain here until investigations are complete and compensation is paid,” Osama Rabie, chairman of the Suez Canal Authority (SCA), told Egyptian state television last week, according to the Wall Street Journal. “The minute they agree to compensation, the vessel will be allowed to move.”

But the National Union of Seafarers in India argues that refusing to let the crew off the ship amounts to holding them for ransom. “If the SCA has suffered losses, they can sort it out with those involved with the ship,” Abdulgani Serang, the union’s general secretary, told the Times of India on Sunday.

Egypt seizes the Ever Given, saying its owners owe nearly $1 billion for Suez Canal traffic jam

a reply to: BrokenCircles

I can see if they lost revenue because the ships took a different route, but even with a 6 day delay, it's still faster for the ships to wait as opposed to travelling around the whole continent. I doubt many ships left. Based on those figures, the canal generates over $50 billion in revenue a year?

If it was me I'd disolve the company and say you can have the ship.
What caused it????? You haven't read heh. The captains wife kept badgering her husband "go on love, let me have a drive". I rest my case.

a reply to: BrokenCircles

The head office of the company that operates the ship is based in Taiwan however that company actually own's it is a Japanese ship building company and it is basically like a rental car but a very big one.

A bill like that is something even most large corporations would struggle to meet even if they have the assets on paper.

That said the ship caused far more in losses globally than the tiny amount (relatively speaking) that Egypt is asking for in reparations for there efforts to unclog the internationally vital financial artery that the ship blocked.

I have sympathy for the sailors on board of her but this is something that should never have happened, if it was a freak act of nature and the weather was to blame and that could be proved then it may be that the bill should finally be settled by the insurance company's responsible however that may prove complicated as it was a situation that was highly unlikely to be covered by any insurance policy unless the claimant can prove it does come under the insurance but getting that much out of even the biggest ship insurance company would take a lot of time, years in fact to settle such a claim even under ordinary circumstances and given that the ship is actually saved will they foot the bill or won't they? and then there is the dispute as to if the ship's owner or it's operator are more liable.

In Egypt's defence I can understand there actions as this was very costly to them and someone does have to foot the bill after all.
en.wikipedia.org...

a reply to: BrokenCircles

If I remember correctly, lot of those containers were shipping livestock.

Obviously they'll all be dead by now.

Imagine the smell.

a reply to: LABTECH767

This article breaks down the cost a little bit more.

The ship’s insurer for third-party losses, the U.K. P&I Club, said in a statement that it received a claim for $916 million, the size of which is “largely unsupported.” It said it was disappointed that the vessel was arrested on Tuesday.

........

The SCA has said compensation is needed to cover losses of transit fees, damage to the waterway during the dredging and salvage efforts, and the cost of equipment and labor. It has calculated that it missed out on about $15 million of transit fees each day.

The U.K. P&I Club said the claim included a $300 million salvage bonus and another $300 million for loss of reputation, but not the professional salvor’s claim for its services. It said a generous offer was made to settle the claim and that negotiations will continue.

www.bloomberg.com...

I don't know for sure how that stuff works, but a 'Salvage Bonus' of $300 Million, that doesn't include the Salvor's services sure seems a bit excessive.

Just a hunch but they probably exaggerated the bill intentionally, knowing it would get knocked down through negotiations.


One thing I was wondering about the crew members, is if they actually have to stay on board, or maybe it's just because they don't have any other ride. Aside from the Captain, I'm sure most of them have absolutely no control over where the boat goes.


The same article linked in the OP, stated...

that the two Suez Canal pilots who were on board to offer guidance were not ultimately responsible for making decisions and dismissed the idea that strong winds had pushed the ship off course.

so if they're not responsible, then surely the regular crew members also can't be held responsible.

Bet this is another BS red herring.

Bet insurance companies are paying off soon 😎

Now I'll never get those Spongebob sweatpants I ordered on Amazon.

a reply to: peter_kandra

Based on those figures, the canal generates over $50 billion in revenue a year?

Apparently, it's $15 Million per day for Transit Fees.

The SCA has said compensation is needed to cover losses of transit fees, damage to the waterway during the dredging and salvage efforts, and the cost of equipment and labor. It has calculated that it missed out on about $15 million of transit fees each day.

www.bloomberg.com...

So that'd be $5,475,000,000 per year, minus whatever expenses.

originally posted by: Wide-Eyes
a reply to: BrokenCircles

If I remember correctly, lot of those containers were shipping livestock.

I know I read that about some of the other ships that were having to wait for the route to be unblocked, but I don't remember ever seeing anything about what was actually on the Ever Given.


If so, then at least those 25 crew members can have some big fat fresh steaks.
Surely there's some alcohol on there too, to help em wash down the steaks.



eta: now that I think about it, I suppose it's possible that they may just be enjoying this little vacation. Probably not, but maybe. You never know.....

If they make it out of this mess, might have to rename the ship Never Given Up.

a reply to: Wide-Eyes

They Don’t put livestock in sea containers, sea containers are sealed

a reply to: Raggedyman

Yes, my mistake. It was the ships stuck queuing that were carrying livestock.

Most expensive backhoe quote in the existence of mankind.

a reply to: BrokenCircles

That bill appears to be excessive. Egypt likes to play games.

They are getting ready to get into a game with Ethiopia, that will lead to them being literally " in over their heads"

The thing is that Egypt didn't lose a billion dollars, so when they get the money what will they do with it? Does anyone trust Egypt to distribute the money to those who suffered financial losses? I don't. This is a ransom in disguise.

While I don't remember seeing much in the news I have heard grumblings that many insurance companies are taking a massive hit and some are not paying out. Has anyone else heard information on this subject? Obviously it wouldn't be for just the Ever Given but all the other ships as well that could not get through due to the blockage or chose to go around Africa

That sounds like when I tried to negotiate the cost of a 12 pack of beer missing a can, at the convenience store

originally posted by: BrokenCircles
a reply to: peter_kandra

Based on those figures, the canal generates over $50 billion in revenue a year?

Apparently, it's $15 Million per day for Transit Fees.

The SCA has said compensation is needed to cover losses of transit fees, damage to the waterway during the dredging and salvage efforts, and the cost of equipment and labor. It has calculated that it missed out on about $15 million of transit fees each day.

www.bloomberg.com...

So that'd be $5,475,000,000 per year, minus whatever expenses.

Thanks. I saw that someone else posted that there's 2 separate additional $300 million claims. Just throw everything out there and see what sticks.

So they are now allowing 2 of the crew members to go home. Aside from that, this article doesn't provide any other new details.

ISMAILIA, Egypt (Reuters) - Two crew members aboard the cargo vessel that blocked global shipping in the Suez Canal last month will be allowed to return to India owing to urgent personal circumstances, the Suez Canal Authority (SCA) said on Thursday.

www.reuters.com...