The Suez Canal Authority and the Japanese owner of the Ever Given container ship agreed “in principle” to a compensation agreement, according to the ship’s insurer and legal team.
Authorities in Egypt, where the ship became stuck in the Suez Canal for six days in March, had demanded that Ever Given’s owner, Shoei Kisen Kaisha, pay for the costs associated with the busy shipping route’s blockage and reportedly sought nearly $1 billion at the outset of negotiations.
“The UK Club is pleased to announce that, 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 the UK P&I Club, one of the ship’s insurers, in a statement Wednesday. “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.”
EVER GIVEN FALLOUT THREATENS SHIPPING EVEN AFTER DISLODGING
Stann Marine Ltd., a law firm representing Ever Given’s owners and insurers, confirmed the “in principle” agreement in a statement.
The Ever Given has been in control of authorities since Egypt seized it in April over the ship owner’s lack of payment.
“Once the formalities have been dealt with, arrangements for the release of the vessel will be made,” the UK Club’s statement added.
Shoei Kisen Kaisha didn’t want to pay “anything,” said Lt. Gen. Osama Rabie, the chairman of the Suez Canal Authority, at the time of the ship’s impoundment, while a spokesperson for the owner insisted negotiations were happening at the time of seizure.
The amount of the settlement was not immediately disclosed. Egyptian negotiators reportedly reduced their original demand to $550 million. Shoei Kisen Kaisha and Ever Given‘s insurers reportedly initially offered $150 million.
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Ever Given became lodged between the banks of the Suez Canal on March 23 following a sandstorm that brought winds in excess of 45 mph. It was freed on March 29. Egyptian authorities and the ship’s crew and management have disagreed over the cause of the incident.
The Washington Examiner reached out to Bernhard Schulte Shipmanagement, manager of the Ever Given, but did not immediately receive a response.
