Egyptian authorities confiscated a massive 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 the ever-giving hulking Ever Give would not be allowed to leave the country until a compensation amount was set with the ship’s Japanese owner, Shoei Kisen Kaisha Ltd.
“The ship is now officially confiscated,” he told Egyptian state television late Monday. “They don’t want to pay anything.”
There was no immediate comment from the shipowner.
Rabie did not say how much money the channel’s authority is looking for. However, a judicial official said he was asking for at least $ 900 million. The state-run Ahram daily reported $ 900 million.
This amount takes into account the recovery operation, the costs of stopped channel traffic and the lost transit fees for the week that Ever Date blocked the channel.
The official said the order to confiscate the ship was issued on Monday by a court in the city of Isuezia in the Suez Canal and that the ship’s crew was informed on Tuesday.
He said Ismailia prosecutors also opened a separate investigation into what prompted Ever Give to be caught. The official spoke on condition of anonymity, as he was not allowed to broadcast the media.
Rabie said negotiations are still ongoing to reach a settlement.
He warned last week in an interview with The Associated Press that bringing the case to court would be more harmful to the shipowner than resolving the canal management.
The disputes could be complex, as the ship is owned by a Japanese company, operated by a Taiwanese shipper and flagged in Panama.
The Panama-flagged ship carrying about $ 3.5 billion in goods between Asia and Europe crashed on March 23 in the man-made narrow channel that divides mainland Africa from the Sinai Peninsula in Asia.
The ship crashed into a one-lane stretch of canal, about 6 km north of the southern entrance, near the city of Suez.
On March 29, rescue teams released Ever Date, ending a crisis that has clogged one of the world’s most vital waterways and stopped billions of dollars a day in maritime trade. Since then, the ship has been idling in Egypt’s great bitter lake, just north of where it previously blocked the canal.
The unprecedented six-day shutdown, which raised fears of long delays, a lack of goods and rising consumer costs, has put pressure on the shipping industry, which is already under pressure from the coronavirus pandemic.
Rabie, the head of the channel, told state television that the channel’s authority had not committed any wrongdoing. He refused to talk possible causes, including the speed of the ship and the strong winds that hit it during a sandstorm.
When asked if the shipowner was guilty, he said, “Of course, yes.”
Rabie said the conclusion of the authority’s investigation is expected on Thursday.