Egypt has impounded the giant container ship Ever Given, which blocked the Suez Canal for six days last month, as part of an effort to secure some $916 million in compensation.
A court in the Egyptian city of Ismailia granted a request for seizure of the 220,940-tons vessel by the Suez Canal Authority (SCA), according to a Bloomberg report, citing an April 13 report by the Al-Ahram newspaper.
The canal was closed for six days following the mega-ship’s grounding in a sandstorm on March 23, blocking the waterway and disrupting global traffic in one of the world’s most important trade routes. The vessel was finally pulled free from the bank of the canal on March 29, allowing a massive tailback of ships to start navigating the canal once again.
The SCA said the compensation is needed to cover losses of transit fees, damage to the waterway during dredging and salvage efforts, and the cost of the equipment and labor. The authority calculates it missed out on about $15 million in transit fees each day the canal was closed.
The Ever Given’s insurer for third-party losses, the U.K. P&I Club, confirmed that the ship’s Japanese owner had received a claim for $916 million, according to Bloomberg.
According to the Bloomberg report, despite “the magnitude of the claim, which was largely unsupported,” the owners and insurers of the vessel said they have been negotiating “in good faith” with the SCA, and on April 12 provided “a carefully considered and generous offer” to SCA to settle the claim. They expressed their disappointment at the SCA’s subsequent decision to seize the ship.
The SCA said the vessel will be held until the compensation is paid. The Ever Given’s 25 crew members have reportedly remained on board the ship.