Ever Given vessel prohibited to leave the Suez Canal until its owners pay up to $1 billion in compensation is paid

While the massive Even Given container vessel has been released from the banks of the Suez Canal, it is still stranded, entangled in a dispute about who should pay for its removal from the waterway. Egyptian authorities have said that they will not release the giant ship that has been trapped in the Suez Canal for nearly a week unless its owners agree to pay up to $1 billion in compensation.

"The vessel will remain here until the inquiries are completed and compensation is paid," Suez Canal Authority Chairman Lt. Gen. Osama Rabie told a local news station on Thursday, according to the Wall Street Journal. "We hope for a fast agreement," he said, adding that "the vessel will be able to move the minute they consent to compensation." Egyptian officials, according to Rabie, will seek $1 billion to cover the costs of releasing the vessel.

The sum will cover the cost of the equipment and machinery used to clear the route, as well as any damage to the canal caused by the dredging, and will reward approximately 800 people who worked to free the 200,000-ton ship, according to Rabei.

It would also reimburse the costs of the canal blockage, which resulted in an unprecedented traffic jam of over 400 ships on either side of the river. Rabie did not elaborate on how he arrived at that number.

According to the London-based financial company Revenitiv, the Egyptian government lost $95 million in transit fees as a result of the blockage. Aerial view of Egypt's Suez Canal from a commercial flight on March 27, 2021.

It is also uncertain who will pay for Egypt's compensation claim. The Japanese owner of the Ever Given, Shoei Kisen Kaisha Ltd., informed the Wall Street Journal that it hadn't heard from Egyptian authorities yet.

According to Bloomberg, Eric Hsieh, president of Evergreen Marine Corp, the charterer of Ever Provided, said that the company is "free of liability for cargo delays" because "it would be protected by insurance."

The 1,300-foot Ever Given hit the headlines on March 23 when an unexpected wind storm caused it to deviate from its path and become entangled in the Suez Canal's sandbanks, disrupting global trade. Six days later, it was set free.

Egypt has since launched a formal inquiry into how the ship became stranded in the first place.

The vessel, its cargo, and the 25-person Indian crew will continue anchored in Egypt's Great Bitter Lake till the investigation is completed. Authorities told Insider earlier this month that the ship's crew is secure and will continue to be compensated.

Rabie said that he would like to resolve the compensation issue outside of arbitration, but he did not rule out filing a lawsuit. According to CNBC, he said, "We could agree on a certain compensation, or it goes to court." "If they intend to go to arbitration, the ship should be impounded."