The UK P&I Club has announced that the Ever Given will be released by the Suez Canal Authority (SCA) after a compensation agreement was confirmed.
In a statement, the UK P&I Club, the vessel’s insurer, said the “formal solution” has now been agreed and that preparations for the vessel’s release are being made.
The announcement from the UK P&I Club comes after a deal in principle was struck with the SCA and the vessels owner, Shoei Kisen Kaisha, following the six-day obstruction in March 2021.
“The UK Club is pleased to announce that, following the agreement in principle between the parties, and after further meetings with the Suez Canal Authority’s negotiating committee and numerous court hearings, good progress has been made and a formal solution has now been agreed,” the UK P&I Club said.
“Preparations for the release of the vessel will be made and an event marking the agreement will be held at the Authority’s headquarters in Ismailia in due course.”
The SCA initially demanded $916 million and is believed to be willing to have $200 million up front, with $350 million paid later.
The 22,000 TEU vessel ran aground in the Suez Canal on 23 March 2021 and forced more than 300 cargo ships of all types to sit at anchor and many others to divert around the Cape of Good Hope.
The congestion and delay raised fears of a potential backlog crisis at Europe’s ports, and added to the maritime industry’s burden caused by the COVID-19 pandemic.