Ever Given starts journey out of Suez Canal

According to BBC, the mega container ship that blocked the Suez Canal in March finally left the Suez Canal after Egypt signed a compensation deal with its owners and insurers. The Ever Given, around 09:30 GMT headed north towards the Mediterranean escorted by tugs. The ship has been impounded for three months near the canal city of Ismailia.

As it got under way, Egyptian TV showed footage of the captain and a crew member being presented with flowers and a plaque on board the ship.

The 193 kilometre long Suez Canal connects the Mediterranean Sea at the canal's northern end to the Red Sea in the south and provides the shortest sea link between Asia and Europe.

The vital waterway was blocked when the 400-meter long Ever Given became wedged across it after running aground amid high winds. Global trade was disrupted as hundreds of ships were stuck in the traffic jam.

The container ship was refloated following a six-day salvage operation that involved a flotilla of tug boats and dredging vessels. One person was killed during the operation.

Since then, the Suez Canal Authority (SCA) has been seeking compensation from the Ever Given's Japanese owner Shoei Kisen for the cost of the salvage operation, damage to the canal's banks and other losses.

The SCA initially asked for US$916 million compensation, including US$300 million for a salvage bonus and US$300 million for loss of reputation. But UK Club - which insured Shoei Kisen for third-party liabilities - rejected the claim, describing it as "extraordinarily large" and "largely unsupported".

The SCA later lowered its demand to US$550 million. The final settlement, which has not been revealed, was agreed a few days ago and signed on Wednesday to coincide with the ship's release.

SCA head Osama Rabie told a news conference that the authority would not change its rules about the passage of ships in bad weather. However, he said the grounding had accelerated plans for the canal's expansion.

The UK Club paid tribute to "the work and expertise of the SCA and others whose professionalism and dedication resulted in the ship being refloated".

"Over the last three months we, along with the ship's owners and other interests, have worked closely with the SCA's negotiations team to achieve today's results," a statement said.

Yukito Higaki of Imabari shipbuilding, of which Shoei Kisen is a subsidiary, said the company would continue to be "a regular and loyal customer" of the Suez Canal Authority.

The vessel, with an Indian crew, is still loaded with about 18,300 containers. It is due to undergo an inspection by divers at Port Said before sailing to Rotterdam and then to the UK port of Felixstowe where it will offload its containers, the Wall Street Journal reported.

Ever Given to leave Suez Canal on 7th July

A giant container ship that blocked Egypt’s Suez Canal for nearly a week in March this year will be released on 7^th July following an agreement between authorities and the vessel’s owners, said Suez Canal Authority (SCA) on Sunday.

A ceremony for the signing of the settlement ending the dispute over the 400-meter-long Ever Given will be held on Wednesday, and the ship will be allowed to depart.

Earlier, Stann of London, the attorneys for the ship’s owner and insurers, said that a formal solution had been agreed upon and that preparations for its departure were being made.

Neither the SCA nor the attorneys provided details of the settlement. But the agreement marks an end to a dispute that arose after the Ever Given was freed after getting stuck in the vital waterway in March. The incident roiled global shipping markets.

The SCA had initially sought over US$900 million in damages and compensation that included recovering expenses related to freeing the ship, lost revenue and other costs and claims. The figure was later lowered to US$550 million.

Japan’s Shoei Kisen Kaisha the owner, and the ship’s insurers initially offered US$150 million.

The SCA brought the matter to an Egyptian court, which ordered the seizure of the ship pending a resolution of the dispute. Authorities had said that they were eager to reach an out-of-court agreement and that the ship would be allowed to leave once such a deal was reached.

The ship is being held in the Great Bitter Lake -- about halfway along the canal.

Settlement reached over ship stuck in Suez Canal

Reportedly, the owner and insurers of the mega container ship that blocked the Suez Canal for six days in March 2021 and disrupted global shipping have reached a settlement with the Egyptian authorities.

The insurer's statement did not specify the amount, but said that once the settlement is formalized, the ship ‑ Ever Given ‑ after nearly three months of haggling, finger-pointing and court hearings - would finally complete its journey through the canal.

"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 a statement from the insurer UK P & I Club. "Together with the owner and the ship's other insurers, we are now working with the SCA to finalize a signed settlement agreement as soon as possible."

Since the ship was freed in a huge salvage effort, about six days after running aground across the Suez, the canal authority had been locked in an often acrimonious stand-off with the ship's owner and operators over what the authority said it was owed for the incident.

The authority had sought up to US$ one billion in compensation, a figure that included the cost of tugboats, dredgers and crews hired to salvage the ship as well as the loss of revenue while the canal was blocked.

Under the standard terms that shipping companies are required to accept before traversing the Suez Canal, ships are liable for all costs or losses they cause in the canal.

Still, the authority never provided a detailed breakdown of how it had arrived at such a large amount.

The sum does not cover the disruption to worldwide shipping, including delayed cargo and costs to other shipping lines, which experts have said could ultimately soar into the hundreds of millions.

Physically, at least, the Ever Given was long ago declared fit to move on. But until compensation is paid, the ship and its crew will remain impounded in the Great Bitter Lake, a natural body of water that connects the section of the canal where the ship was stuck to the next segment, according to SCA Chairman, Osama Rabie.

An Egyptian court had ordered the ship held until the financial claims were settled, a move that drew protests from the Ever Given's Japanese owner, Shoei Kisen Kaisha.

For more than three months, they faced off in an Egyptian commercial court and in the local press.

The Egyptians insisted that the captain - who, under SCA rules, bore ultimate responsibility for commanding the ship despite the presence of Suez pilots who directed steering and speed - was to blame.

Whatever were the Ever Given's objections, the canal having a reputation for demanding large liability sums from ship-owners, enjoyed a strong hand in the negotiations.

The months of negotiations left the ship's crew of 25 Indian seafarers stuck in the middle, unable to leave the Ever Given until the bargaining ends, but for a few cases in which the Egyptian authorities granted crew members' requests to leave after their contracts ended or for family reasons.