Egypt and Suez ship owners agree on compensation

A preliminary compensation deal has been reached between Egyptian authorities and the owners and insurers of the giant ship that blocked the Suez canal earlier this year.

The owners and insurers of the Ever Given ship and the Suez canal authority have been in dispute over compensation that has seen the container ship detained for months.

The canal's authority initially demanded over $900m (£644m) to cover costs including for lost revenues and reputational damage while the ship was stuck on the canal.

The ship's Japanese owners and its insurers disputed the claim as well as its detention. The canal authorities later lowered the compensation request to $550m.

On Wednesday, the ship owner and insurers' representatives and the canal's chairman announced a deal - and said they would sign a final settlement soon.

The Ever Given had wedged across the Suez Canal for almost a week in March before it was freed on 29 March. Since then, it has been anchored in a lake between two stretches of the canal pending resolution of the compensation dispute.

The ship blocked one of the world's busiest trade routes, forcing companies to reroute ships and causing long tailbacks of hundreds of vessels.

Source: BBC