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Egypt Will Reduce The Amount Of Compensation To The Owner Of The Long Ci To 550 Million USD

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The chairman of the Egyptian Suez Canal Authority, Usama Rabie, issued a statement on the 25th, saying that the Canal Authority has decided to reduce the amount of the claim against the owner of the "Changci" freighter from the previous US$916 million to US$550 million.


   The statement stated that according to previous estimates, the total value of the cargo carried by the "Changci" freighter was US$2 billion. Therefore, the Egyptian local court required the ship owner to pay US$916 million in compensation. Subsequently, the shipowner estimated that the total value of the cargo on the ship was 775 million U.S. dollars. The Canal Authority recognized this and therefore reduced the claim amount to 550 million U.S. dollars.


   It is understood that the compensation proposed by the Canal Administration covers the loss of canal tolls caused by the stranding of the "Changci", the cost of rescue equipment and labor, and the cost of damage to the waterway caused by dredging and salvaging.


   The heavy freighter "Longci" flying the Panamanian flag ran aground on the new channel of the Suez Canal on March 23, causing a blockage of the channel. After several consecutive days of rescue, the stranded freighter successfully lifted off on March 29. Due to the delay in payment of compensation by the shipowner, Egypt has formally detained the freighter, and the freighter is still staying in the berth on the Suez Canal.


   The Suez Canal is located at the key point of the intercontinental zone of Europe, Asia and Africa, connecting the Red Sea and the Mediterranean Sea. The income of the canal is one of the main sources of Egyptian national fiscal revenue and foreign exchange reserves.


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