Egypt releases ship Ever Given after three months

Nearly three months have passed since last March when the container ship Ever Given blocked the Suez Canal, one of the world's main trade routes. Six intense days of work were necessary to unclog the ship, which caused a global market collapse.

Since the container ship was finally disentangled. Egypt is holding the vessel under a judgement issued by the Ismailiya court. Egypt asked the owning company for $916 million in compensation and took the case to court. The Suez Canal Authority (SCA) subsequently lowered the demand to $600 million and finally to $550 million, but claims that the ship's owner, Japanese firm Shoei Kisen Kaisha, has only offered $150 million.

The Canal Authority continues to maintain that Egypt was not at fault and that the ship bears full responsibility for what happened. The head of the Suez Canal Authority, Admiral Osama Rabie, had already said that the Ever Given would not be allowed to leave the country until financial compensation was received from the Japanese owner, Shoei Kisen Kaisha. The Ever Given was successfully refloated on 29 March and moved to the large Bitter Lake where it was inspected and repairs were carried out. 

Finally, the Egyptian authorities and the shipowner's lawyers and the shipowner's insurer have reached an agreement whereby the Ever Given will be released on 7 July. According to a statement from the Authority, the Ever Given will leave next Wednesday after the signing of a "settlement agreement" with the shipowner's company. A ceremony that puts an end to the dispute over the container ship. However, neither the SCA nor lawyers have provided details of the agreement.

The expected departure of the approximately 400-metre vessel will follow the signing of the agreement, which will take place in the presence of the head of the Authority, Admiral Osama Rabie, the representative of the company that owns the vessel and "a number of ambassadors and international partners".

The Ever Given incident highlighted the dependence of the world market on the Suez Canal. The Suez Canal is an important route through which oil is transported from the Gulf region to Europe and North America. According to the SCA, Egypt lost $12-15 million (approximately 9.8 million to 12.5 million euros) each day the canal was closed. In total, 422 vessels, carrying 26 million tonnes of goods, were blocked because of the incident.

The blockage of the Suez Canal has prompted a search for alternative routes to continue the commercial transit of containers and goods. Some shipping lines considered different routes, in particular the one around Africa via the Cape of Good Hope. However, this route, which would avoid the collapse of the Suez Canal, would add at least 10 days to shipping, according to the International Chamber of Shipping.

For its part, Russia put forward the option of the Arctic Route, a proposal it defended as the fastest, cheapest, safest and most environmentally friendly way of transporting goods, but which has yet to prove its reliability.