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image credit: Reuters After reaching an agreement with the vessel’s owners and insurers, Egypt will release the container ship that blocked the Suez Canal in March. The Ever Given would be allowed to depart the Great Bitter Lake, the canal’s midway point, on Wednesday, according to the two parties. The terms of the agreement were not disclosed, but Egypt had requested $550 million (£397 million). After running aground in severe gusts, the 400m-long (1,312ft) Ever Given became stuck across the canal. It was rescued six days later after a salvage operation that comprised a fleet of tug boats and dredge vessels and resulted in the death of one person. Hundreds of ships were forced to wait for passage through the 193-kilometer (120-mile) channel that connects the Mediterranean Sea to the Red Sea and provides the quickest sea link between Asia and Europe, disrupting global trade. On Sunday, UK Club, which insured Ever Given owner Shoei Kisen for third-party liabilities, said that they had reached a “formal arrangement” with the Suez Canal Authority (SCA) to resolve their compensation issue. “Preparations for the vessel’s release will be made,” the statement continued, “and a celebration commemorating the agreement will be conducted at the authority’s headquarters in Ismailia in due time.” The celebration will take place on Wednesday, according to the SCA, and participants will be able to witness the ship leave the canal. ‘I was blamed for blocking the Suez Canal.’ The Suez Canal blockade resulted in an increase in sulphur pollution. What method was used to liberate the Suez Canal ship? The amount of compensation was not disclosed, but SCA chairman Osama Rabie said the company will receive a tug boat as part of the transaction. The SCA requested $916 million in total, with $300 million for a salvage bonus and $300 million for reputational damage. However, UK Club dismissed the allegation as “extraordinarily huge” and “largely unsubstantiated.” Later, the SCA lowered its claim to $550 million, but the owners and insurers reportedly offered $150 million in exchange. EPA/MAXAR TECHNOLOGIES/COPYRIGHT In May, Mr Rabie claimed the Ever Given struggled to turn and ran aground despite the efforts of two escort tugs because it was traveling at a “very high” speed and its rudder was “not acceptable.” While the owners and insurers of the Ever Given “completely recognize that the SCA is entitled to compensate for their valid claims arising out of this incident,” the allegations concerned UK Club. “While the skipper is ultimately responsible for the vessel, the Suez Canal pilots and SCA maritime traffic management services are in charge of navigation in the canal transit within a convoy. The transit speed and the availability of escort tugs are examples of such controls.” The goods within the Ever Given’s 18,000 containers are estimated to be worth $775 million. They include items for huge global corporations such as Lenovo of China and Ikea of Sweden, as well as smaller enterprises such as Snuggy of the United Kingdom and Pearson 1860, a bicycle manufacturer. Egypt’s shipping industry International trade Canal de Suez/nRead More

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