Ever Given vessel is about to leave Suez after reaching a compensation agreement with SCA

Egyptian officials are preparing to release the Panama-flagged ship Ever Given with a special ceremony after reaching an agreement with the ship's owners and insurance companies. The ship was seized after clogging the Suez Canal.

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The Ever Given vessel blocked the Suez Canal for nearly a week in March. (Photo: DPA / ZUMA PRESS)

After months of mooring in the Bitter Lakes of the Suez Canal, the Ever Given is finally set to continue its voyage to Rotterdam in this week.

The law firm representing the owner of the Japanese ship - Shoei Kisen Kaisha - said yesterday it has reached a formal agreement on the amount of compensation paid by the Suez Canal Authority (SCA) after the ship ran aground.

“The UK P&I Club is pleased to announce that, following the agreement in principle between the parties and after further meetings with the SCA’s negotiating committee and numerous court hearings, a formal solution has now been agreed".

The company added: "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."

According to Loadstar, the signing of the agreement is scheduled for Wednesday and the Ever Given vessel is expected to depart the same day for the main Dutch port on July 16-17.

The 20,388-teu Ever Given ran aground in the southern part of the Suez Canal on March 23, blocking the world's vital traffic for six days. There was no cargo damage or any pollution as a result of this, but around 400 ships were delayed. Ever Given is currently operated by Taiwan-based Evergreen shipping lines, which is one of the largest oceanic vessels in operation.

Why was the Ever Given ship held back?

After the ship was rescued, the canal authority asked the Japanese owner for compensation for the lost revenue and the cost of salvaging it.

The channel regulator announced that the revenue lost during the Ever Given ship's run aground amounts to $12-15 million (€10-12.6 million) per day.

Maritime data firm Lloyd's List said in April that the congestion was carrying about $9.6 billion in cargo a day.

What do we know about this deal?

Last week, SCA Director Osama Rabie said Egypt has signed a non-disclosure agreement with the owners of Ever Given as the final deal is being finalized. Terms of the deal have so far not been disclosed.

Initially, the canal authority requested $916 million to cover lost revenue, rescue efforts and damage to reputation. However, ship and cargo insurance companies are skeptical about this claim, saying the total cost is only close to about 150 million USD. The amount was later publicly reduced by the SCA to $550 million.

Faz Peermohamed, a member of the London-based Stann Marine law firm, which represents Shoei Kisen owners and insurers, said: “We are pleased to announce that ... the deal is progressing well and a formal solution has been agreed".

"Preparations for the release of the ship will be carried out and an event marking the agreement will be held at the Authority's headquarters in Ismailia in due course," Peermohamed said.