Suez Canal crisis: Egypt may seek $1 billion compensation

WION Web Team
Cairo, Egypt Published: Apr 01, 2021, 04:15 PM(IST)

A satellite image shows stranded container ship Ever Given after it ran aground in Suez Canal, Egypt Photograph:( Reuters )

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According to Suez Canal Authority chief executive Osama Rabie, the amount is an estimate of the losses linked to transit fees, damages incurred during dredging and salvage efforts

Egypt on Wednesday said that it may seek compensation worth $1 billion after a giant container ship ran aground, choking off international trade through the Suez Canal for almost a week.

According to Suez Canal Authority chief executive Osama Rabie, the amount is an estimate of the losses linked to transit fees, damages incurred during dredging and salvage efforts.

Also read| NASA shares nighttime satellite images of traffic jam at Suez Canal

“This is the right of the country. It should get its due,'' Rabie said.

The six-day blockage threw global supply chains into disarray after the 400-metre-long (430-yard) ship became jammed diagonally across a southern section of the canal, the shortest shipping route between Europe and Asia.

The Suez Canal Authority (SCA) said on Wednesday that shipping had returned to normal levels, with a total of 81 ships transiting the canal.

Egypt's Leth Agencies said on Wednesday that a total of 163 ships had transited the Suez Canal since its reopening and that 292 ships were currently waiting.

Five LNG vessels transited on Tuesday, commodities analysts Kpler said in a note, adding that it appeared congestion at the canal was "now quickly tapering off".

The SCA has scheduled accelerated shipping convoys and has said it hopes the backlog of ships can be cleared by the end of the week.

The blocking of the canal is expected to give rise to flurry of insurance claims, with Lloyd's of London expecting a "large loss", possibly amounting to $100 million or more, according to its chairman.

The Japanese owner of the Ever Given said it had not received any claims or lawsuits over the blockage.

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