After the colossal cargo ship Ever Given gets stuck for one week, the Suez Canal has finally been unblocked, and Egypt could ask for $1 billion in compensation for helping.
Before the incident in late March 2021, the major world shipping route was sailed through smoothly. According to Evergreen, turbulent winds of approximately 56kph caused the Ever Given to deviate from its course. This resulted in the massive container ship getting wedged in the banks on both ends.
Suez Canal Authorities on Compensation
Finally, Ever Given was finally dislodged after six days of halting billions of dollars in maritime commerce daily. However, authorities say that Egypt may demand compensation up to $1 billion for the costs of lending a hand in freeing the colossal container ship,
Response Given by Evergreen Marine Corp
As stated by the lead of the Suez Canal Authority, Lt. Gen. Ossama Rabei, to the Sada El Balad channel of Egypt, “the country will reach over a billion dollars in compensation.” However, it remains unclear who is responsible for paying for the demanded price.
Moreover, the president of Evergreen Marine Corp, Eric Hsieh, announced in a company briefing that the corporation is covered by insurance, and is thus “free of responsibility from cargo delays,” as stated by a report from Bloomberg.
Fund Allocation from the Demanded Compensation
Robei further specifies that the demanded compensation will be directed towards fixing the damages on the canal due to dislodgement, paying for the costs of machinery and equipment utilized to clear the passageway, pay the 800 people involved in freeing the 200,000-ton ship, and covering the losses in revenue at the Suez Canal.
In a translation by NBC News, Rabei said the amount that the authorities are asking for is only fair, further saying that they “saved them [Evergreen] so much,” owing to the fact that the Ever Given container ship was dislodged without incurring major losses or damages to it.
Rabei continued, “It [Egypt] should get its due,” as it is the country’s right to demand so.
Agreement So Far
The lead of the Suez Canal Authorities hopes for an agreement to be reached concerning appropriate compensation in as soon as two to three days. Otherwise, Evergreen’s Ever Given cargo ship will remain in the Great Bitter Lake in the north of the Suez Canal.
According to a report, Rabei said, “We could agree on a certain compensation, or it goes to court.” He also adds that the ship should be held if Evergreen decides to settle disputes in the courtroom.
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