Egyptian court adjourns Suez Canal ship-block case for further compensation talks

The Ever Given, one of the world’s largest container ships, is seen after it was fully floated in the Suez Canal, Egypt, March 29, 2021. (Reuters)
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Updated 31 May 2021
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Egyptian court adjourns Suez Canal ship-block case for further compensation talks

  • Next hearing was adjourned until June 20 on the request of lawyers representing the Suez Canal Authority and the owner of the giant cargo vessel that closed the waterway for six days
  • Both sides have blamed the other for the Ever Given’s grounding and the dispute centers on the amount of compensation the authority is claiming for salvaging the vessel

CAIRO: An Egyptian court has postponed a compensation case over the Ever Given container ship’s blocking of the Suez Canal to allow more time for negotiators to agree a deal.

The next hearing in the matter was adjourned to June 20 on the request of lawyers representing the Suez Canal Authority and the owner of the giant cargo vessel that closed the waterway for six days in March after running aground.

Both sides have blamed the other for the Ever Given’s grounding and the dispute centers on the amount of compensation the authority is claiming for salvaging the vessel.

Initially, the Suez Canal Authority had demanded $916 million in compensation, an amount that was later lowered to $550 million, head of the authority, Lt. Gen. Osama Rabie, said on TV on Sunday. The money would cover the salvage operation, costs of stalled canal traffic, and lost transit fees for the week the Ever Given blocked the channel.

The vessel’s Japanese owner, Shoei Kisen Kaisha Ltd., and insurers disputed the claim having previously had a $150 million compensation package offer rejected by the authority.

The Ismailia Economic Court adjourned the hearing after the ship’s owner submitted a new offer to settle out of court, the Suez Canal Authority said in a statement.

Since it was freed, the Panamanian-flagged vessel, which carries cargo between Asia and Europe, has been ordered by authorities to remain in a holding lake mid-canal while compensation was agreed.

The canal’s blockage disrupted global shipping with hundreds of vessels delayed and others forced to take the much longer route around the Cape of Good Hope at Africa’s southern tip, requiring additional fuel and costs.

An estimated 10 percent of world trade flows through the canal, a pivotal source of foreign currency to Egypt, with 19,000 ships making the passage last year, according to official figures.

Announcing the court’s adjournment of the case, Khaled Abu Bakr, the authority’s adviser to the negotiating committee, said the Ever Given’s owner had acknowledged the authority’s professional handling of the crisis and negotiations over damages were still ongoing.

He pointed out that details of the talks and the amount of compensation would be kept private in order to preserve relations between the company and commercial agents.

Mohammed Al-Sayed, a member of the negotiating committee, said the authority had managed to refloat the Ever Given without causing any damage to the ship or its cargo.

However, he noted that the authority had incurred losses during the rescue operation including a boat which sank resulting in the death of one its crew.

Nabil Zeidan, legal representative of the Suez Canal Authority, said data from the ship’s black box recorder had confirmed that the Ever Given’s captain was at fault for the accident by exceeding canal speed limits and travelling at 22 knots (40.7 kilometers per hour).

He rejected allegations that the authority had been responsible for the incident by allowing the ship to sail in unfavorable weather conditions.

George Safwat, official spokesperson for the Suez Canal Authority, said the rescue operation had involved more than 600 authority personnel but that the worker who died belonged to a contractor’s rescue team.


Trump says ‘hopefully’ no need for military action against Iran

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Trump says ‘hopefully’ no need for military action against Iran

  • US president said he is speaking with Iran and left open the possibility of avoiding a military operation
  • An Iranian military spokesman warned Tehran’s response to any US action would not be limited
PARIS: US President Donald Trump said on Thursday he hoped to avoid military action against Iran, which has threatened to strike American bases and aircraft carriers in response to any attack.
Trump said he is speaking with Iran and left open the possibility of avoiding a military operation after earlier warning time was “running out” for Tehran as the United States sends a large naval fleet to the region.
When asked if he would have talks with Iran, Trump told reporters: “I have had and I am planning on it.”
“We have a group headed out to a place called Iran, and hopefully we won’t have to use it,” the US president added, while speaking to media at the premiere of a documentary about his wife Melania.
As Brussels and Washington dialed up their rhetoric and Iran issued stark threats this week, UN chief Antonio Guterres has called for nuclear negotiations to “avoid a crisis that could have devastating consequences in the region.”
An Iranian military spokesman warned Tehran’s response to any US action would not be limited — as it was in June last year when American planes and missiles briefly joined Israel’s short air war against Iran — but would be a decisive response “delivered instantly.”
Brig. Gen. Mohammad Akraminia told state television US aircraft carriers have “serious vulnerabilities” and that numerous American bases in the Gulf region are “within the range of our medium-range missiles.”
“If such a miscalculation is made by the Americans, it will certainly not unfold the way Trump imagines — carrying out a quick operation and then, two hours later, tweeting that the operation is over,” he said.
An official in the Gulf, where states host US military sites, said that fears of a US strike on Iran are “very clear.”
“It would bring the region into chaos, it would hurt the economy not just in the region but in the US and cause oil and gas prices to skyrocket,” the official added.
‘Protests crushed in blood’
Qatar’s leader Sheikh Tamim bin Hamad Al-Thani and Iran’s President Masoud Pezeshkian held a call to discuss “efforts being made to de-escalate tensions and establish stability,” the Qatar News Agency (QNA) reported.
The European Union, meanwhile, piled on the pressure by designating the Islamic Revolutionary Guard Corps (IRGC) a “terrorist organization” over a deadly crackdown on recent mass protests.
“’Terrorist’ is indeed how you call a regime that crushes its own people’s protests in blood,” said EU chief Ursula von der Leyen, welcoming the “overdue” decision.
Though largely symbolic, the EU decision has already drawn a warning from Tehran.
Iran’s military slammed “the illogical, irresponsible and spite-driven action of the European Union,” alleging the bloc was acting out of “obedience” to Tehran’s arch-foes the United States and Israel.
Iranian officials have blamed the recent protest wave on the two countries, claiming their agents spurred “riots” and a “terrorist operation” that hijacked peaceful rallies sparked over economic grievances.
Rights groups have said thousands of people were killed during the protests by security forces, including the IRGC — the ideological arm of Tehran’s military.
In Tehran on Thursday, citizens expressed grim resignation.
“I think the war is inevitable and a change must happen. It can be for worse, or better. I am not sure,” said a 29-year-old waitress, speaking on condition of anonymity for fear of reprisals.
“I am not in favor of war. I just want something to happen that would result in something better.”
Another 29-year-old woman, an unemployed resident of an upscale neighborhood in northern Tehran, said: “I believe that life has highs and lows and we are now at the lowest point.”
Trump had threatened military action if protesters were killed in the anti-government demonstrations that erupted in late December and peaked on January 8 and 9.
But his more recent statements have turned to Iran’s nuclear program, which the West believes is aimed at making an atomic bomb.
On Wednesday, he said “time is running out” for Tehran to make a deal, warning the US naval strike group that arrived in Middle East waters on Monday was “ready, willing and able” to hit Iran.
Conflicting tolls
The US-based Human Rights Activists News Agency (HRANA) said it has confirmed 6,479 people were killed in the protests, as Internet restrictions imposed on January 8 continue to slow verification.
But rights groups warn the toll is likely far higher, with estimates in the tens of thousands.
Iranian authorities acknowledge that thousands were killed during the protests, giving a toll of more than 3,000 deaths, but say the majority were members of the security forces or bystanders killed by “rioters.”
Billboards and banners have gone up in the capital Tehran to bolster the authorities’ messages. One massive poster appears to show an American aircraft carrier being destroyed.