Cairo is arguing with the ship’s owner over the amount of compensation for canal damage and commercial losses.
The freighter Ever Given, which has been blocking the Suez Canal for almost a week, has been confiscated by Egyptian authorities.
Cairo is in dispute over the amount of compensation for the damage with the Japanese company Shoei Kisen Kaisha, which owns the ship.
“The ship has been officially confiscated,” Lieutenant General Osama Rabi, head of the Suez Canal Authority, told Egyptian state television.
Egypt is reportedly demanding about $1 billion in compensation for damage to the canal and commercial losses associated with the blockage.