Egypt has seized the container vessel Ever Given that blocked the Suez Canal recently causing a massive loss to the world economy.

The move by the Egyptian authorities comes after a court in the city of Ismailia granted a seizure request regarding the Ever Given vessel at the behest of the Suez Canal Authority, Bloomberg reported quoting the state-run media Ahram Gate.

The Suez Canal Authority seeks compensation to the tune of $ 1 billion for the damage caused to the most important waterway of the world and loss of business.

The recent move by the Egyptian authorities has turned up the heat on Ever Given’s Japanese owner to negotiate a settlement of about $1 billion for damage to the canal and lost businesses.

The ship’s insurer for third-party losses, the U.K. P&I Club, said in a statement on Tuesday that Ever Given’s owner -- Japan-based Shoei Kisen Kaisha Ltd. -- received a claim for $916 million.

“Despite the magnitude of the claim which was largely unsupported, the owners and their insurers have been negotiating in good faith with the SCA,” the statement said. “On 12 April, a carefully considered and generous offer was made to the SCA to settle their claim. We are disappointed by the SCA’s subsequent decision to arrest the vessel today.”

The container ship had caused major trade disruptions when it ran aground in the Suez Canal on March 23, blocking the passage for other ships. The Suez Canal Authorities worked round the clock over six days to free the ship, dislodging it on March 29. The blockage cost Egypt $95 million in lost transit fees alone, according to an assessment by a financial analysis firm Refinitiv, says a WSJ report.

An investigation is still underway to ascertain the exact reason which expected to be disclosed by Thursday, April 15, 2021.

The ship, along with a 25-person crew, is anchored in Egypt’s Great Bitter Lake, a water body that divides two sections of the canal.

(Edited by : Anshul)

First Published:Apr 14, 2021 1:56 PM IST