Parties agree on settlement for release of Ever Given

Owners and insurers of Ever Given, the container ship that blocked Suez Canal in March said on Sunday that a formal settlement was agreed in a compensation dispute. Suez Canal authorities said that the vessel would 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.

In March, the Japanese owned Ever Given was stuck in high winds and remained wedged across the Suez Canal for six days. This had disrupted the 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.

Suez Canal Authority said that the contract will be signed on Wednesday. There will be a ceremony and 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.

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

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.

(With inputs from agencies)