The Ever Given Free to Sail After Reaching Settlement

A settlement between the Suez Canal Authority (SCA) and the owners of the Ever Given ship has finally been reached. The container vessel will be allowed to sail on July 7.

Earlier in March, the giant ship blocked the prominent shipping route for almost an entire week which severely disrupted global trade. After it was dislodged, the SCA impounded the ship and demanded compensation.

“Preparations for the release of the vessel will be made and an event marking the agreement will be held at the Authority’s headquarters in Ismailia in due course,” explained Faz Peermohamed of Stann Marine, representing the owners of the ship Shoei Kisen.

An initial amount of $916 million in compensation was demanded by the SCA to cover salvage costs, reputational damage, and revenue loss. This was later lowered to $550 million.

Despite the incident with the Ever Given, the Suez Canal earned $3 billion in revenue during the first six months of the year. This equates to an 8.8% increase compared to the same period last year.

“We preserved the rights of the authority in full, preserved our relationship with the company and also political relations with Japan,” explained SCA Chairman Osama Rabie.

The settlement contract will be signed on Wednesday, according to the SCA, after which the ship will be allowed to sail.

Source: Nikkei Asia