(4 minutes read)
· An initial agreement on compensation has been reached between Egypt and the owner of the Ever Given container ship that blocked the Suez Canal, affecting the flow of international trade for a few days, creating consternation among trade circles
· The ship’s owners and insurers said that they had reached an initial agreement after intense negotiations between the authorities and in consultation with Suez Canal Authorities
· They were now putting the “final touches” to the agreement, The agreement is likely to be signed in the middle of next week
An initial agreement on compensation has been reached between Egypt and the owner of the Ever Given container ship that blocked the Suez Canal, affecting the flow of international trade for a few days, creating consternation among trade circles. This was revealed by the head of the Suez Canal Authority (SCA).
The ship’s owners and insurers said that they had reached an initial agreement after intense negotiations between the authorities and in consultation with Suez Canal Authorities. They are now putting the “final touches” to the agreement, The agreement is likely to be signed in the middle of next week. The Ever Given, which had a capacity of 200,000 tonnes ran aground on 23 March, blocking traffic on the canal. More than 10% of the world’s trade is passing through the canal.
The blockage, which lasted six days, cost Egypt between $12 million (€9.8 million) and $15 million (€12.5 million) per day of closure, according to the Suez Canal Authority (SCA). One of the insurers, UK Club, also said that in principle an agreement has been reached between the parties. The signing of the agreement should then lead to the release of the ship, which has been held by the Egyptian authorities since March.
UK Club has insured the owner of the Ever Given for certain damages and the vessel itself and its cargo were insured separately. No information is available on the quantum of compensation. In the beginning Egypt had demanded US$916 million (€767 million), before lowering the amount to US$600 and then US$550 million (€461 million). The blockade had led to disruptions of 422 ships, carrying 26 million tonnes of cargo.
