30% straight down! Egyptian authorities: Claims for the Long Grant reduced to US$600 million

It is reported that the Suez Canal Authority has proposed that the authority will cut its owner’s claim by one third for the container ship Ever Given that blocked the Suez Canal for nearly a week.

That is, down from the previous US$900 million to US$600 million, the shipowner needs to compensate for the loss of transportation costs, the damage to the waterway caused by the dredging and salvage work, as well as the equipment and labor costs. At the same time, the Suez Canal Administration also notified the shipowner of the terms of payment, but Ship East has not yet responded.

On April 13, the Suez Canal Authority applied to the Egyptian court for judicial detention of the "Longsend" vessel. The Ismeria City Economic Court ruled that the "Longsend" vessel must not leave until the shipowner pays US$916 million in compensation. Egypt.

On April 23, the British P&I Club, which is responsible for the P&I insurance of the "Long Give" freighter, stated that it could not reach a settlement with the Egyptian side for compensation for the ship stranding accident. The British P&I Club appealed to the Egyptian court against the Egyptian seizure. "Long Give" freighter.

A few days ago, Osama Rabie, chairman of the Suez Canal Authority, told MBC Masr that the Egyptian side reduced its claims by one third for the container ship owner who blocked the Suez Canal in March.

According to Osama Rabie, the Canal Authority stated that Egypt will reduce the amount of claims from 900 million U.S. dollars to 600 million U.S. dollars. The Canal Authority also provided payment terms to the owner of the container ship Changci, but they have not yet responded.

In mid-April, due to delays in compensation negotiations, an Egyptian court approved the Suez Canal Authority’s request to seize the ship. The Suez Canal can shorten the voyage between Asia and Europe by two weeks. Hundreds of ships had to wait for the canal to reopen, and the blockage disrupted the shipping market.

The Canal Authority stated that the compensation covers the loss of canal tolls, the cost of damage to the waterway during the dredging and salvage work, as well as the cost of equipment and labor.

On May 4, the Ismailia court in northeastern Egypt dismissed the lawsuit filed by the owner of "Longgi", Zhengrong Steamship, and held that the decision to require "Longgi" to stay in the Suez Canal until compensation was negotiated was a decision. appropriate. However, the efforts of the British P&I Club finally paid off. Egypt reduced the compensation claim for the "Long Grant" from US$900 million to US$600 million, which will greatly reduce the company-related losses.

Another hearing on the incident will be held on May 22.