Ever Given owners and Suez Canal Authority land a compensation deal

2 mins read  Sealuminati Team June 24, 2021

After a prolonged grounding of the 20,000 TEU containership Ever Given in Egypt ever since the Suez Canal blockade, a final agreement is underway between the vessel owners and Suez Canal Authority regarding the claims over compensation amounts.

The extended and heavy sessions of work which went on for about fifteen days between the two sides have finally produced results leading to an agreement. The details haven’t been made public yet but the deal is set to be announced on the back of a fresh proposition made Japanese company Shoei Kisen Kaisha to the SCA for the settlement of damages due to the vessel’s grounding.

The UK Club stated, “Together with the owner and the ship’s other insurers we are now working with the SCA to finalise a signed settlement agreement as soon as possible. Once the formalities have been dealt with, arrangements for the release of the vessel will be made.”

The initial demanded compensation amounted to about $916 million and was turned down by the owners as it way too high. Further, after reviewing the whole terms of the ship owners, the claim was lowered to $550 million, given that $200 million is paid in advance and the rest $350 million to be compensated as letters of guarantee issued by an “A class” bank in Egypt.