Settlement agreed to release ship that blocked Suez Canal

The Suez Canal Authority has held the giant ship and its crew in a lake between two stretches of the waterway since it was dislodged on March 29

A representative of the owners and insurers of the Ever Given container ship that blocked the Suez Canal in March said on Sunday that a formal settlement had been agreed with the canal authority to allow the vessel to be released.

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.

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

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"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.

Earlier on Sunday an Egyptian court adjourned hearings in the compensation dispute to July 11 to allow the canal and the ship's owner to finalise a settlement, court sources and a lawyer said.

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.

Shoei Kisen and the ship's insurers had disputed the claim and the ship's detention under an Egyptian court order.