The Chairman of Suez Canal Authority (SCA), Osama Rabie, says the owners and insurers of a giant cargo ship that blocked the Suez Canal in March have reached agreement in principle in a compensation dispute with the canal authority.
The Ever Given container ship grounded across the canal for six days, blocking hundreds of ships and disrupting global trade.
Reuters reports that Rabie had told a local Egyptian television programme on Wednesday that they agreed to settle the issue in a peaceful way without going through the courts and agreed on a final settlement.
“The deal is being drafted and will be reviewed,” he said.
Faz Peermohamed of Stann Marine, which represents the owners and insurers, said in a statement that work was under way to finalise a signed settlement agreement as soon as possible and arrangements for the release of the Ever Given vessel would be made after formalities had been dealt with,
The Ever Given container ship has been anchored in a lake between two stretches of the canal since it was dislodged on March 29.
The SCA had demanded $916 million in compensation to cover salvage efforts, reputational damage and lost revenue before publicly lowering the request to $550 million.
The Ever Given’s Japanese owners, Shoei Kisen, and its insurers have disputed the claim and the ship’s detention under an Egyptian court order.
Rabie said the settlement reached was seen as “satisfactory” by the canal, adding that the parties had signed a confidentiality agreement so the sum on the deal would not be made public until everything is finalized and signed.
“I want to reassure you that this settlement upheld all of our rights, the cost of the rescue operation and the damages that befell the waterway. We also maintained our relationship with our partners… and the political and economic relations with Japan, thank God,” he said.
