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Friday, 30 July 2021

Ship owner says Suez Canal Authority was at fault over Ever Given grounding: lawyer

On Sunday, Ismailia Economic Court ruled that the appeal submitted by Shoei Kisen against the impounding of the Ever Given ship does not fall within its jurisdiction

Reuters , Ahram Online , Sunday 23 May 2021
Ever Given
In this photo released by Suez Canal Authority, the Ever Given, a Panama-flagged cargo ship is accompanied by Suez Canal tugboats as it moves in the Suez Canal, Egypt, Monday, March 29, 2021. Salvage teams on Monday set free a colossal container ship that has halted global trade through the Suez Canal, bringing an end to a crisis that for nearly a week had clogged one of the world's most vital maritime arteries. (Suez Canal Authority via AP)
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The owner of a container ship that blocked the Suez Canal in March says the canal authority was at fault over its grounding as it disputes the vessel's detention and a compensation claim, a lawyer representing the owner said on Saturday.

The Ever Given, one of the world's largest container ships, became jammed across the canal in high winds on March 23, and remained grounded for six days, blocking traffic in both directions and disrupting global trade.

The vessel has since been held in a lake between two stretches of the canal as the Suez Canal Authority (SCA) pursues a $916.5 million claim against Japanese owner Shoei Kisen.

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.

The court also ordered the referral of the case back to the district's court of first instance for consideration on 29 May.

The appeals chamber at Ismailia Economic Court held hearings on Saturday over the ship's detention, which the SCA is seeking to uphold following an appeal by the owner, as well as the SCA's financial claim.

Lawyers representing Shoei Kisen argued that the SCA had been at fault for allowing the ship to enter the waterway amid bad weather, Ahmed Abu Ali, a member of the legal team, told Reuters, adding that the authority failed to prove any fault by the ship.

Recordings from the ship that were presented to the court showed disagreements between SCA pilots and its control centre over whether it should enter the canal, Abu Ali said.

Lawyers for Shoei Kisen said the ship should have been accompanied by at least two tug boats suitable for the ship's size "but this didn't happen", he added.

In an official statement following Sunday’s ruling, the Suez Canal Authority said its lawyers responded to allegations by the ship owners that Egypt was at fault for allowing the mega ship to pass during unstable weather.

The lawyers argued that the ship remained under the command of its captain during the crossing of the canal, adding that the SCA guide's opinion while on board is non-binding.

Lawyers for Shoei Kisen argued that the Ever Given's detention was legally flawed and that the work to release the ship was not "a salvage (operation) in the proper legal sense", meaning the SCA could not seek compensation for such an operation, Abu Ali said.

"This was one of the duties of the authority according to the traffic contract," he said.

Shoei Kisen is claiming $100,000 in initial compensation for losses related to its detention, he said.

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