Ever Given to be released by Suez Canal Authority

The Suez Canal Authority (SCA) will release the Japanese-owned Ever Given ship today following a settlement agreement between Egyptian authorities and the vessel’s owner, Shoei Kisen.

Following a six-day blockage in March, the SCA has been holding the ship and its crew in a lake between two stretches of the waterway amid a dispute over a demand for compensation. The SCA has insisted Shoei Kisen pay $550 million in damages, believing that the captain bore ultimate responsibility, despite the presence of Suez pilots directing steering and speed.

Despite estimates that the ship was holding up $9.6 billion of trade each day, the canal earned $3 billion in the first six months of 2021, up 8.8% compared with the same period last year. As a result, expect today’s ceremony to conclude the negotiations amicably.

In the long-term, the SCA will likely widen and deepen sections of the canal to avoid supply chain disruptions, already reeling from a global container shortage amid the COVID-19 buying boom. By allowing two-way traffic the canal could handle increased trade, reaping significant economic benefits for Egypt’s economy, with predicted revenue estimated to hit $13.2 billion by the end of 2023.

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