The P&I Club(UK) and other Insurers have come close to an agreement with the Suez Canal Authority (SCA) for compensation following the stranding of the Containerships M.V.Ever Given in March this year and blocking the channel to commercial traffic for 6 days.

Since the on going negotiations with the SCA, and the Insurance parties involved prolonged indefinitely, they requested the Egyptian court to postpone the next hearing to 4 July, to hopefully complete the deliberations successfully by such time.

P & I Club(UK) confirmed that during the recent negotiations a proposal was submitted that they have firm confidence that the proposals put across to SCA would satisfy all the requirements of the SCA.

The Owner and its Insurers submitted to the Ismailia Economic Court  their sincere desire to break off the court hearing  amicably and to reach a final and mutually agreeable solution which would satisfy all parties involved.

While the level of compensation has not been disclosed, it will likely be higher than the original $150m offered by the P&I Club and lower than the $600m demanded by the SCA. One prominent marine damage Surveyor had estimated approximate costs for the removal of the vessel at close to $200m.

The 20,388 Teus Containership M.V.Ever Given went aground at the southern end of the Suez Canal on 23 March, blocking the Suez Canal passage to commercial marine traffic for six days. There was no loss of cargo or any pollution as a consequence, but around 400 vessels were stranded and delayed.

Subsequently, after successfully releasing the ship, the SCA made an initial compensation claim of $916m, later reducing the demand by $300m. But vessel and cargo Insurers were sceptical about the claim, arguing that the total costs were closer to $150 million only.