Egypt has offered to withdraw $ 300 million of its $ 916 million cases for Ever Given, 30 miles from where it was stuck. Egypt is seeking compensation for the six-day blockage the ship induced on the Suez Canal in late March. According to the channel chief Osama Rabie, the Suez Canal Authority (SCA) is proposing to reduce the compensation bill for March grounding on Ever Given’s waterway from $ 916 million to $ 600 million.
The Suez Canal Authority (SCA) later seized the ship while its claim continued. It was stationary in the Great Bitter Lake, a body of water along the canal, about 30 miles from where the ship was stuck.
Shortly after the ship was released, the SCA announced that it would seek compensation of $ 916 million for grounding, listing the costs, including $ 300 million in rescue costs and an unspecified amount for “loss of prestige”.
Rabie said when speaking to a local television channel MBC Masr that the offer was made to the owners of the Japanese Shoei Kisen Kaisha ship, which has not answered yet.
For owners of Ever Given, insurers appealed almost instantly to a $ 916 million claim. The UK Club, representing the Japanese Shoei Kisen Kaisha, called the claim “largely unsupported”, arguing that the SCA did not ensure a detailed justification. The UK Club said on April 12th that it made a “carefully thought out and generous offer”, but that SCA didn’t accept it. The size of the proposal has not been made public.
When contacted by Offshore Energy for a comment on the matter, UK P&0 issued the following statement: “The UK Club has seen the public comments made by SCA chairman, Osama Rabie indicating that the SCA has reduced its claim from $916 million to $600 million. The reduced amount has not been reflected in the SCA’s claim filed at court and Ever Given’s owners still have not been provided with evidence that would support a claim of this size, which remains exceptionally large. The Ever Given’s interests continue to negotiate in good faith with the SCA.”
The offer comes after the appeal filed by the owners of Ever Given against the arrest of the ship and its cargo was rejected. The container ship was apprehended on 13 April after SCA and the shipowners could not reach an agreement on the compensation claim because the amount was too high and was not supported.
The ship has been anchored in the Great Bitter Lakes area since March 29, 2021 and expects legal action overcompensation to behold. Meanwhile, only a few of the ship’s crew were able to leave. SCA denied holding the crew out of their will but insisted that a minimum of one crew remain on board to manage it while it was seized. Rabie previously said that the crew would not be held pledge and that the channel authority was willing to make the ongoing negotiations a success, expressing hope that a reconciliation solution would be agreed soon.
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