SHIPOWNERS, INSURERS CUT DEAL WITH SUEZ CANAL OVER ACCIDENT

The owners and insurers of the giant container ship that blocked the Suez Canal for nearly a week earlier this year have reached an agreement in principle over their dispute with canal authorities, representatives from both sides said late on Wednesday, the Associated Press (AP) reported.

Stann Marine, the lawyers representing the vessel’s owners and insurers, and a spokeswoman for the Suez Canal Authority both confirmed the development. Neither elaborated on what the agreement would entail, but the Suez Canal Authority said more details would be released later.

The disagreement centers on the compensation amount the Suez Canal Authority is claiming for the salvage of the vessel Ever Given, which ran aground in March, blocking the crucial waterway for six days.

Specialist tugboats and dredgers eventually freed the 400-meter-long (quarter-mile-long) cargo ship carrying some $3.5 billion in cargo.

The money will cover the salvage operation, costs of stalled canal traffic and lost transit fees for the week the Ever Given blocked the canal.

The Suez Canal Authority had initially demanded $916 million in compensation, which was later lowered to $550 million.

Since it was freed, the Panama-flagged, Japanese-owned vessel, which carries cargo between Asia and Europe, has been ordered by authorities to remain in a holding lake mid-canal, along with most of its crew, as its owner and the canal authority try to settle the compensation dispute.

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