Suez Canal crisis: Egyptian authorities and owner of Ever Given ship reach settlement

The Japanese owner and insurers of the enormous container ship that blocked the Suez Canal in March have finally reached a settlement with Egyptian authorities, Associated Press reported on June 23. Since the incident, Cairo has grounded the colossal Ever Given ship until financial claims worth roughly US$ 1 billion were settled. However, on Wednesday, the UK P&I Club, one of the insurers of the ship disclosed that the authorities have allowed the ship to complete its remaining journey.

The UK P&I Club said that once the settlement is formalized, the ship Ever Given would be allowed to move ahead. The insurance group, however, did not reveal the amount of settlement or any other details. It is imperative to note that the sum claimed by Egypt does not cover the disruption to worldwide shipping, including delayed cargo and costs to other shipping lines, which experts have said could ultimately soar into the hundreds of millions.

“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 finalize a signed settlement agreement as soon as possible.”

Ever Given impounded

Soon after its salvage, the gigantic Ever Given was seized by Egyptian authorities controlling the canal. At present, it lay 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.

Image: AP