The Japanese owner and insurers of the massive container ship that got stuck in the Suez Canal in March, blocking shipping for almost a week, have finally reached a settlement with Egyptian Authorities.
Hellenic Shipping News reports that the colossal Ever Given container vessel had been grounded in Cairo until financial claims with approximately $1 billion were settled. However, on 23 June, the UK P&I Club, one of the ship’s insurers, disclosed that authorities have permitted the Ever Given to continue its remaining journey.
The UK P&I Club said that once the settlement is formalised, the ship Ever Given would be allowed to continue along its planned route. However, the insurer did not disclose the amount of any settlement or any further details.
The sum claimed by Egyptian authorities does not cover the disruption to worldwide shipping, in the incident dubbed ‘the ship that broke the world’, including delayed cargo and costs to other shipping lines, which experts predict could be into hundreds of millions of dollars.
“Following extensive discussions with the Suez Canal Authority’s negotiating committee over the past few weeks, an agreement in principle between the parties has been reached,” said a statement from the insurer UK P & I Club.
“Together with the owner and the ship’s other insurers we are now working with the SCA to finalise a signed settlement agreement as soon as possible.”
Soon after the ship was freed from its predicament, it was seized by Egyptian authorities who control the canal, and at present, it is still impounded in the Great Bitter Lake, a natural body of water that connects the section of the canal where the ship was stuck to the next segment.
Initially, the Suez Canal authorities had demanded $916 Million but later reduced the demand by $300 million. But vessel and cargo insurers were sceptical about the claim, arguing that the total costs were closer to $150 million.
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