The current demand was determined after assessing the value of the cargo on board which amounts to $775 million
After a court approved the continued detained of the EverGiven yesterday, Suez Canal Authority’s (SCA) Chairman, Osama Rabie, has reduced the compensation sought from the ship’s owner.
The authority is now requesting for $550 million in compensation for the 6-day blockage caused by the ship that saw one of the world’s top trade routes disrupt supply chains all over the world.
The current demand was determined after assessing the value of the cargo on board which amounts to $775 million, Rabie added.
The authority had previously requested $916 million in compensation for loss of revenues and rescue efforts to get the ship unstuck in early April.
The ship’s technical management company, Bernard Schulte Ship management, said in April the Suez Canal Authority had not provided a detailed justification for the compensation claim, calling it “extraordinarily large.”
The compensation will cover the losses incurred by the authority due to the blockage of the canal for six days, cover the salvage operation, costs of stalled canal traffic and lost transit fees.
Rabie stressed that the authority is only looking to compensate for the losses incurred, and not gain more than that.
Related > Suez Canal gains $2B in revenue despite Ever Given incident
A lawyer representing the owner has blamed the canal authority over the EverGiven’s grounding as it disputes the vessel’s detention and a compensation claim.
On Sunday, Ismailia Economic Court ruled that considering the appeal submitted by Shoei Kisen against the impounding of the Ever Given ship does not fall within its jurisdiction, ordering a referral of the case back to the district's court of first instance for consideration on the 29th May.
The international waterway around 61 percent of global oil tanker traffic, according to Rabie in a previous statement.
