AGREEMENT REACHED TO RELEASE SHIP THAT BLOCKED SUEZ CANAL

The owners and insurers of the Ever Given container ship that blocked the Suez Canal in March said on Sunday a formal settlement had been agreed in a compensation dispute, and the canal authority said the vessel will be allowed to sail on July 7.

The Suez Canal Authority (SCA) has held the giant ship and its crew in a lake between two stretches of the waterway since it was dislodged on March 29, amid a dispute over a demand for compensation by the SCA, Yousry Mohamed and Aidan Lewis reported for Reuters.

The Japanese-owned Ever Given had become stuck in high winds and remained wedged across the canal for six days, disrupting global trade.

"Preparations for the release of the vessel will be made and an event marking the agreement will be held at the Authority's headquarters in Ismailia in due course," Faz Peermohamed of Stann Marine, which represents owner Shoei Kisen and its insurers, said in a statement.

The SCA said the settlement contract would be signed on Wednesday at a ceremony, and that participants would be able to watch the ship leaving. Neither the SCA nor Stann Marine gave details of the settlement. Shoei Kisen and its insurers said last month they had reached an agreement in principle with the SCA.

The SCA had demanded $916 million in compensation to cover salvage efforts, reputational damage, and lost revenue before publicly lowering the request to $550 million.

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