Blockship Suez Canal to be released on Wednesday | Financial

SCA and the Japanese firm Shoei Kisen Kaisha have long negotiated appropriate compensation for the six-day blockage of the major shipping route between Asia and Europe in March. The Ever Given, on its way to Rotterdam, got stuck in one of the busiest shipping routes in the world after a sandstorm. Towing daughter Smit of maritime concern Boskalis from Papendrecht pulled the ship free from under the eye of the world.

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The four hundred meter long ship has since been anchored in a wider part of the canal. The Ever Given was seized over a dispute between the owners and the SCA over compensation for the damage. On June 23, both parties reached an agreement in principle.

It is not clear how much money is transferred by the Japanese. The SCA previously asked for more than $916 million in compensation, but later said it would settle for $550 million. The Japanese owner of the Ever Given is said to have already offered 150 million dollars in compensation. However, in the SCA’s opinion, that was not sufficient to cover the costs of missing out on fare, damage to the canal, and costs of manpower and equipment to salvage the vessel.

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The blockade created long queues of ships on both sides of the 193 kilometer waterway between the Red Sea and the Mediterranean Sea. More than 350 ships had to wait before they could pass through. Some of the ships en route to the Suez Canal decided to circumnavigate Africa. Normally, nearly $10 billion worth of goods pass through the canal every day.

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