Reached a settlement to release the ships blocking the Suez Canal business and economic news

The deal between the Suez Canal Authority and the Ever Give shipowner will be signed in Ismailia, Egypt on Wednesday.

The Suez Canal Authority stated that it has reached an agreement with the owner of a giant container ship to resolve the financial dispute. Blocked critical waterways Spent nearly a week in Egypt earlier this year.

The authorities did not disclose the details of the settlement agreement with Shoei Kisen Kaisha Ltd., the Japanese owner of Ever Give. The company said the deal will be signed at a ceremony in the Suez Canal city of Ismailia on Wednesday.

It said the ship will also be released on Wednesday.

Faz Peermohamed, representing the shipowner Shoei Kisen and its insurance company Stann Marine, said in a statement: “The ship will be prepared to Agreement activities.” Sunday, but did not provide details of the settlement.

Osama Rabbi, director of the Egyptian Suez Canal Authority, said last month that the two sides have reached an agreement on the amount of compensation. But he said that he would not disclose it because they have already signed a non-disclosure agreement until the final contract is signed.

He said that as part of the settlement, the canal will receive a tug with a towing capacity of approximately 75 tons, but did not mention any other details.

“We have fully upheld the rights of the authorities, our relationship with the company and our political relationship with Japan,” he told a private TV channel on Sunday night.

Transaction blame

The ship ran aground on the single lane section of the canal on March 23 and was picked up six days later. Huge salvage work It consists of a group of tugboats.

Since its release on March 29, the Japanese ship flying the Panamanian flag has transported cargo between Asia and Europe. The authorities have ordered it and most of its crew to stay in a lake in the middle of the canal. The two sides negotiated a settlement.

The disagreement centered on the amount of compensation for ship salvage requested by the Suez Canal Authority.

The money will be used for salvage operations, the cost of stagnant canal traffic, and the transit fees lost during the week that the canal was blocked due to “eternal grant”.

At first, the Suez Canal Authority demanded compensation of US$916 million, which was later reduced to US$550 million.

The two parties traded in responsibility for the ship’s stranding, and bad weather, wrong decisions by the canal authorities, and human and technical errors were all considered possible factors.

The six-day blockade interrupted global shipping. Hundreds of ships waited in place for the canal to flow unimpeded, while some ships were forced to take longer routes around the Cape of Good Hope at the southern tip of Africa, which required additional fuel and other costs.

The rabbi said that despite the Ever Give accident, the Canal’s revenue in the first six months of 2021 was US$3 billion, an increase of 8.8% over the same period last year.