According to the Suez Canal Authority (SCA), the Ever Given container ship, which was seized by Egypt after blocking the Suez Canal for nearly a week, would be released on Wednesday following an agreement with its owners and underwriters.
The canal authority announced that a ceremony would be held on July 7 to commemorate the signing of an agreement with the owners as well as "the departure of the ship."
On March 23, the 400-meter (1,312-foot) long mega-ship was sailing through a single-lane section of the Suez Canal when a sandstorm caused it to swerve off course and become trapped diagonally across the canal.
It stayed stuck there for six days, disrupting global trade and closing a critical conduit between Europe and Asia.
What was the rationale for keeping the ship?
After the ship was ultimately freed, the canal authorities took possession of it and sought reimbursement from the ship's Japanese owners for lost revenue and salvage costs.
The canal authorities estimated that income lost every day during the Ever Given's stranding was $12-15 million (€10-12.6 million).
In April, the maritime data company Lloyd's List reported that the bottleneck was holding up $9.6 billion worth of cargo per day.
What do we know so far regarding the transaction?
Egypt signed a non-disclosure agreement with the owners of Ever Given last week, according to SCA chairman Osama Rabie, as the final payment was being negotiated.
The canal authority first requested $900 million in compensation to cover lost revenue, recovery efforts, and reputational damage. However, the figure was ultimately reduced to $550 million in public.
"We are pleased to announce that... good progress has been made and a formal solution agreed," said Faz Peermohamed of the London-based Stann Marine law firm, which represents Shoei Kisen's insurance.
"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," Peermohamed said.
The settlement was not disclosed by the lawyer.
As part of the settlement, SCA Chairman Rabie stated that the canal will receive a tugboat with a pulling capacity of 75 tonnes.
"We preserved the rights of the authority in full, preserved our relationship with the company and also political relations with Japan," he said on Sunday evening to a private TV channel.
Revenue generated by SCA
The SCA brought in little over $5.7 billion in revenue for Egypt in the 2019-20 fiscal year, according to official estimates.
Despite the Ever Given catastrophe, the canal generated $3 billion in income in the first half of 2021, an increase of 8.8% over the same period last year.
