Suez Canal Accident Compensation Agreement Reached... Ever Given Expected to Be Released on the 7th

[Asia Economy Reporter Kim Suhwan] Regarding the massive container ship Ever Given grounding accident that occurred in the Suez Canal last March, the compensation negotiations between the Suez Canal Authority (SCA) and the ship's insurance company have been finally settled. Accordingly, the Ever Given, which had been seized by the SCA, is expected to be released soon.

On the 4th (local time), the shipowner, Japan's Shoei Kisen, and the insurance company issued a statement announcing that the compensation negotiations with the SCA had been finalized.

The statement said, "Preparations for the release of the ship's seizure have been completed, and the formal signing of the agreement will take place in Ismailia, the northeastern Egyptian city where the SCA headquarters is located, according to procedure," adding, "The ship will depart on the 7th."

However, the shipowner and the SCA did not disclose the specific terms of the agreement.

Previously, the Ever Given ran aground on March 23rd in the southern part of the Suez Canal. This caused the suspension of traffic through the Suez Canal, which handles more than 10% of international maritime cargo volume, leading to a temporary 6% surge in oil prices and the immobilization of hundreds of ships, delaying maritime trade in various countries.

Subsequently, the SCA deployed dredgers and large tugboats to refloat the ship, succeeding in about a week and beginning towing operations.

The SCA then claimed compensation of $916 million (approximately 1.04 trillion KRW), considering damages from the traffic disruption and salvage operation costs.

However, the shipowner proposed a much lower amount of $150 million (approximately 170 billion KRW), causing difficulties in reaching an agreement.

As a result, the SCA seized the ship and later lowered its compensation demand to $550 million (approximately 624.8 billion KRW) during negotiations.