Egyptian court upholds detention of 'Ever Given' ship

Compensation claim over container ship that blocked Suez Canal referred back to lower court

This satellite imagery released by Maxar Technologies shows a close up overview of the MV Ever Given container ship and tugboats in the Suez Canal. AFP / Maxar Technologies

The guided-missile cruiser USS Monterey (CG 61), left, and the guided-missile destroyer USS Thomas Hudner (DDG 116) sail behind the aircraft carrier USS Dwight D. Eisenhower (CVN 69) during a Suez Canal transit, in this picture taken April 2, 2021 and released by U.S. Navy. Reuters

In this photo released by Suez Canal Authority, the Ever Given, a Panama-flagged cargo ship, is pulled by one of the Suez Canal tugboats, in the Suez Canal, Egypt. AP Photo

A spectator waves as the Ever Given container ship moves along the Suez Canal towards Ismailia after being freed from the canal bank in Suez, Egypt. Bloomberg

A man waves at the Panama-flagged MV 'Ever Given' container ship as it is tugged in Egypt's Suez Canal after it was fully dislodged from the banks, near Suez city. AFP

A view shows Ever Given container ship in Suez Canal in this Maxar Technologies satellite image. Satellite image ©2021 Maxar Technologies/Handout via Reuters

A handout photograph made available by the Suez Canal Authority shows the Ever Given container ship after it was refloated in the Suez Canal, Egypt. EPA

A handout photograph made available by the Suez Canal Authority shows the Ever Given container ship after it was refloated in the Suez Canal, Egypt. The head of the Suez Canal Authority announced on 29 March that the large container ship, which ran aground in the Suez Canal on 23 March, is now free floating after responding to the pulling maneuvers. EPA

People watch Ever Given, a Panama-flagged cargo ship, that has been stuck sideways and blocked traffic in Egypt's Suez Canal, move past after it was set free by salvage teams. AP Photo

People watch as the container ship 'Ever Given' is refloated, unblocking the Suez Canal in Suez, Egypt. This morning the container ship came partly unstuck from the shoreline, where it ran aground in the canal last Tuesday, and later resumed its course shortly after 3pm local time. Getty Images

A view of the Panama-flagged MV 'Ever Given' (operated by Taiwan-based Evergreen Marine) container ship, a 400-metre- (1,300-foot-)long and 59-metre wide vessel, as it remains lodged sideways impeding traffic across Egypt's Suez Canal waterway. AFP

Ship Ever Given, one of the world's largest container ships, is seen after it was fully floated in Suez Canal, Egypt. Suez Canal Authority/Handout via Reuters

The container ship 'Ever Given' is refloated, unblocking the Suez Canal in Suez, Egypt. This morning the container ship came partly unstuck from the shoreline, where it ran aground in the canal last Tuesday, and later resumed its course shortly after 3pm local time. Getty Images

The container ship 'Ever Given' is moving in the Suez Canal, Egypt. The Suez Canal Authority on 29 March said that traffic is to resume after the large container ship 'Ever Given' was refloated. EPA

The owner of the container ship that blocked the Suez Canal for six days had its second appeal against the vessel's detention rejected by an Egyptian court on Sunday.

The Ever Given is now anchored in the Great Bitter Lake between two stretches of the canal pending a compensation claim from the canal authority.

Ahmed Abu Shanab, a member of the legal team representing Japanese shipowner Shoei Kisen Kaisha, told reporters the decision could not be appealed.

The Ismailia Economic Court also decided the compensation claim of hundreds of millions of dollars brought by the authority against the owner will be referred back to a lower court on May 29.

"The ruling…is a judgment that is consistent with Egyptian maritime trade law," Mohy El Alwany, a member of the defence team, told The National. "We are confident in the Egyptian judiciary and that it will issue a fair judgment that preserves the rights and interests of all parties."

The 400-metre Ever Given ran aground on March 23 in high winds and remained lodged across the canal for six days.

It blocked traffic for hundreds of ships in both directions in the vital waterway and disrupted global trade until a major salvage operation refloated it.

The Suez Canal Authority (SCA) had asked for $916 million in compensation to cover the loss of transit fees, damage to the waterway during the dredging and salvage efforts, and the cost of equipment and labour.

SCA chairman Osama Rabie later said the authority would accept $600m.

But UK P&I Club, which covers the ship's third-party liability insurance, said the amount is excessive.

Another member of the legal team representing Shoei Kisen told Reuters the canal authority was at fault over the ship’s grounding because it allowed it to enter the waterway amid bad weather.

Ahmed Abu Ali said the Ever Given should have been accompanied by at least two tug boats suitable for the ship's size, "but this didn't happen".

He also said the release of the ship was not a salvage operation in the proper legal sense and was one of the authority’s duties according to the traffic contract.

The owner is demanding $100,000 in initial compensation from the authority for damage to the ship.

The canal authority said in a statement on Sunday that it refutes the claims based on the Egyptian Maritime Trade Law of 1990.

It cited articles 282 to 290, which state that the ship is under the captain’s leadership during its canal transit and is solely responsible for any damage. It also highlighted article 305, which gives the right to fair compensation to those who perform rescue work.

Earlier this month the authority, along with President Abdel Fattah El Sisi, announced plans to widen and deepen parts of the canal to increase capacity from 49 vessels per day in 2014 to 97 vessels per day by 2023.

It hopes to increase canal revenue from $5.3 billion in 2014 to $13.2bn by 2023.