What is the total compensation demanded from the MV Ever Given owners?

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MV Ever Given Owners Face US$900 Million Compensation Demand

The MV Ever Given has been seized by court order, with authorities demanding US$900 million in compensation from its owners. This action follows the vessel's prolonged blockage of the Suez Canal, which significantly disrupted global trade for nearly a week. The compensation amount is reportedly calculated to cover losses incurred during the grounding, as well as flotation and maintenance expenses.
Vessel Seized Pending Payment

The Suez Canal Authority (SCA) chief, Osama Rabie, confirmed that the MV Ever Given was seized due to the owners' failure to pay the demanded US$900 million. This seizure was enacted based on a ruling by the Ismailia Economic Court in Egypt. The SCA cited specific articles of Egypt's maritime trade law, which permit the seizure of a vessel until the full compensation amount is settled.
Compensation Calculation Basis

The substantial compensation figure of US$900 million was determined by factoring in the financial impact of the grounding. This includes not only the direct losses sustained by the Suez Canal Authority but also the costs associated with refloating the vessel and its subsequent maintenance. The grounding itself and the extensive salvage operations are also understood to have caused considerable damage to the canal infrastructure.
Ongoing Negotiations and Potential Litigation

While the SCA has seized the vessel, negotiations are reportedly ongoing between the ship's Japanese owners, Shoei Kisen Kaisha, insurance firms, and the canal authority. Analysts, however, have cautioned that determining legal responsibility for the losses among the various parties involved could lead to protracted and complex international litigation. The blockage by the MV Ever Given, which is longer than four football fields, held up an estimated US$9.6 billion in cargo daily between Asia and Europe.

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What is the total compensation demanded from the MV Ever Given owners?

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