The businesses are now working together to finalise formalities for a signed settlement agreement

UK P&I Club, the protection and indemnity insurer for cargo ship Ever Given, has reached an agreement with the Egyptian authorities that will lead to the release of the vessel.

Ever Given, one of the world’s largest container vessels, became wedged in the Suez Canal for a week from 23 March until 30 March 2021.

Following the event, the 400-metre, 224,000-tonne vessel has since been held by Egypt in the Great Bitter Lake – a body of water in the centre of the canal. 

The state-owned Suez Canal Authority (SCA) said the ship would be held in Egypt until compensation on its claim had been paid. 

According to a statement by UK P&I Club yesterday (23 June 2021), however, the insurer is “now working with the SCA to finalise a signed settlement agreement as soon as possible”.

The announcement is a result of UK P&I Club’s “extensive discussions” with the SCA negotiating committee over the past few weeks.

During this time, the parties agreed that the negotiations would remain confidential.

Faz Peermohamed, director at legal consultancy Stann Marine, said: “Stann is pleased to announce that, following extensive discussions with the Suez Canal Authority’s negotiating committee over the past few weeks, an agreement in principle between the parties has been reached.

“We are now working with the SCA to finalise a signed settlement agreement as soon as possible.

“Once the formalities have been dealt with, arrangements for the release of the vessel will be made.”

Stann represents the owners and insurers of the Ever Given vessel.

Insurance Times has contacted the SCA for comment.