Back to the complete issue
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.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2021 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of Commercial International Bank (tax ID: 204-891-949), the largest private-sector bank in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; and Act Financial (tax ID: 493-924-612), the leading activist investor in Egypt; and Abu Auf (tax ID: 584-628-846), the leading health foodmaker in Egypt and the region.