Egypt Seizes Ship That Blocked Suez Canal, Demands $1 Billion Compensation



Authorities in Egypt have seized the cargo ship that blocked the Suez Canal and demanded nearly $1 billion in compensation from the vessel's owner.

The Ever Given got turned around and stuck as it tried to navigate the canal during a sandstorm last month. The massive ship, which is longer than four football fields, blocked the crucial international shipping lane, leaving cargo ships stranded for six days and bringing shipping to a halt.

Officials said that nearly $10 billion in cargo was held up every day that the Ever Given was stuck, while Egypt lost between $12-15 million per day.

The ship's insurer for third-party losses, the U.K. P&I Club, said it was "disappointed" in the decision to seize the Ever Given and said it is still working to negotiate a settlement with Egyptian authorities.

"Despite the magnitude of the claim, which was largely unsupported, the owners and their insurers have been negotiating in good faith with the [Suez Canal Authority]," the insurer said in a statement.

According to Bloomberg, the week-long closure continues to impact shipping at ports around the world. Ports in Singapore and Rotterdam are dealing with logjams of cargo ships caused by the disruption to shipping schedules.

Photo: Getty Images