Suez Canal Authority To Receive Tugboat As Additional Compensation From Ever Given Owners

The Suez Canal will receive a tugboat from the owners of the Ever Given cargo ship, which blocked the canal in March, in addition to monetary compensation, Osama Rabie, the chairman of the Suez Canal Authority, said on Wednesday

MOSCOW (UrduPoint News / Sputnik - 07th July, 2021) The Suez Canal will receive a tugboat from the owners of the Ever Given cargo ship, which blocked the canal in March, in addition to monetary compensation, Osama Rabie, the chairman of the Suez Canal Authority, said on Wednesday.

The sides signed an agreement to resolve the situation peacefully earlier in the day. The signing ceremony was held in the Egyptian city of Ismalia, where the headquarters of the Suez Canal Authority is located. Diplomats, Egyptian government officials and reporters attended the event. The Ever Given cargo ship was released and is now sailing to Rotterdam.

Rabie declined to name the amount of compensation, citing a non-disclosure agreement.

"But the amount is such that we defended our rights. We agreed that we received the amount of compensation and the tugboat from the company that owns the vessel," the official told reporters.

The Suez Canal Authority has already received the first part of the two-part compensation.

Japan's Shoei Kisen Kaisha, which owns the cargo ship, in turn, said that Ever Given would undergo a technical check in Port Said.

"Shoei Kisen Kaisha is pleased to confirm that after reaching an official agreement with the Suez Canal Authority, the vessel and its crew have left Great Bitter Lake. Ever Given container ship will proceed to Port Said, where it will undergo a technical check with the help of divers. After approval by the American Bureau of Shipping, Ever Given will complete the route at the next port where it will be unloaded," the owner said in a statement.

The 1,300-feet container ship made headlines in March when it ran aground in the Suez Canal, completely blocking one of the world's busiest shipping lanes for almost a week. It was not until March 29 that Ever Given was dislodged, thanks to unceasing excavation and towing efforts.

The ship was ordered under detention in April after the Suez Canal Authority demanded $916 million in compensation for salvage expenses and lost revenue for the six-day blockage. The amount was later lowered to $550 million. In May, the court suggested the sides try to negotiate a settlement.