PFN Sweden: The Suez Canal Authority (SCA) formally arrested the Ever Given.

On April 14th, 2021, The Suez Canal Authority (SCA) formally arrested the Ever Given. The arrest happened after an Egyptian judge granted the SCA permission to seize the vessel after lodging a $916M compensation claim against its Japanese vessel owner.
The SCA intends to maintain the vessel’s arrest until the claim is paid.

Until now, the canal authority has only made a specific claim for compensation against the ship’s owner. However, the ship’s insurance company UK P&I does not believe that there is a basis for compensation of that magnitude and has therefore appealed the local court’s decision to detain the container ship.

Satellite image ©2021 Maxar Technologies/AFP

In its appeal, the UK P&I Club claims that the Suez Canal has not provided evidence that the canal has suffered a loss equivalent to the $916 million they claim in compensation.

A hearing is scheduled for the appeal case on May 4th, 2021. There is no indication that Ever Given or its cargo will be allowed to leave the canal before the hearing.

Written by Eva Brasar, Global Head of Ocean Freight at Scan Global Sweden, PFN Sweden.