The container ship that blocked the Suez Canal in March will be released by the Egyptian authorities, after a compensation deal was agreed with the vessel’s owners and insurers. The Ever Given has been impounded at Great Bitter Lake since it was freed from the canal, but will now be allowed to leave, the BBC reports.
It took six days in March to release the 400m long vessel after it became wedged sideways in the canal, disrupting global trade as hundreds of ships queued for passage along the 120-mile waterway. The terms of the compensation deal have not been disclosed, but it is understood that Egypt were asking for $550m (£397m).
The third-party liabilities insurer for the Ever Given is UK Club, which announced that a formal solution had been agreed with the Suez Canal Authority (SCA). UK Club also said that preparations are being made for the release of the vessel, which will be marked by an event at the SCA’s headquarters in Ismailia.
The SCA originally requested a compensation deal worth £916m, including $300m for salvage and $300m for loss of reputation. UK Club described the figure as ‘extraordinarily large’ and ‘largely unsupported.’ The SCA lowered its offer, but the final sum remains unknown.
UK Club commented: "It is important to clarify that whilst the master is ultimately responsible for the vessel, navigation in the canal transit within a convoy is controlled by the Suez Canal pilots and SCA vessel traffic management services. Such controls include the speed of the transit and the availability of escort tugs.”
There is some dispute as to which party was ultimately responsible for the incident, which required a flotilla of tug boats and dredging vessels to carry out a rescue operation, during which one person lost their life.
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