[250621.EN.SEA] Shoei Kisen Reaches Deal In Principle On Ever Given Suez Canal Blockage

 

THE Suez Canal Authority (SCA) and the Japanese owner of the 20,388 TEU Ever Given, Shoei Kisen Kaisha, have reached an agreement in principle over a compensation claim for the grounding of the container vessel that disrupted world trade in March, according to media reports

The out-of-court agreement follows a recently increased offer from the vessel's shipowner. "Following extensive discussions with the Suez Canal Authority's negotiating committee over the past few weeks, an agreement in principle between the parties has been reached," Shoei Kisen's insurer, the UK P&I Club and their legal representative, Stann Marine said in a statement.

"Together with the owner and the ships' other insurers, we are now working with the SCA to finalise a signed settlement agreement as soon as possible."

Financial details surrounding the settlement have not been disclosed. The deal follows a recently increased offer from Shoei Kisen to free the vessel after an initial offer of US$150 million. Last month, the SCA lowered its claim to $550 million from its original demand of $916 million.

The claim costs will largely be met through Shoei's protection and indemnity insurer, the UK P&I Club, and its hull and machinery insurers. The UK P&I Club said it is working with shipowners and other insurers to sign a final agreement "as soon as possible".

"Once formalities have been dealt with, arrangement for the release of the vessel will be made," the UK Club statement said. The Ever Given has been kept at the Great Bitter Lake by Egyptian authorities since March 29.

Legal proceedings at the Ismailia Economic Court of First Instance in Egypt were put on hold to allow the parties to come to an agreement after the increased offer was made.

Source : HKSG / Photo : Offshore Energy.