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Sunday, 25 April 2021

Ever Given owner appeals ship’s seizure by Egypt

The owner of the mega container ship that blocked the Suez Canal in March has appealed a decision by an Egyptian court that allowed authorities to seize control of the vessel earlier this month. The ship’s protection and indemnity insurer UK Club said Friday that the ship’s Japanese owner Shoei Kisen had filed an appeal with the Ismailia court on Thursday seeking to overturn the decision, which earlier this month saw the ship arrested by the Suez Canal Authority (SCA). The SCA is demanding that it is paid USD 916 mn in compensation for the six-day blockage before it releases the ship, a figure that UK Club has called “extraordinary large” and unsubstantiated.

Doubts over the court order, SCA demands: UK Club said that the company had to appeal to the court as the issue wouldn’t be resolved without the continued involvement of the Egyptian courts. “The appeal against the arrest was made on several grounds, including the validity of the arrest obtained in respect of the cargo and the lack of supporting evidence for the SCA's very significant claim,” it said. The SCA’s USD 916 mn price includes a USD 300 mn “salvage bonus” and another USD 300 mn for “loss of reputation.” The claim also does not factor in the cost of salvaging the Evergreen-chartered vessel, which “owners and their hull underwriters expect to receive separately.”

When can we expect to hear from the court? A hearing on the appeal could be held on 4 May, the statement said.

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