Ever Given ship owners reportedly to pay $540 million compensation to Egypt

The owner and insurers of the Ever Given container ship have agreed to pay $540 million in compensation to Egypt for the blockage of the Suez Canal, sources with knowledge of the talks told Al Arabiya on Thursday.

Japan’s Shoei Kisen Kaisha Ltd., the owner, and the ship’s insurers – including UK P&I Club – have reached a preliminary agreement with the Suez Canal Authority (SCA) to settle the dispute.

Egypt had initially demanded over $900 million — a figure that was subsequently reduced to $550 million. Suez Canal said the compensation claim shall cover the cost of tugboats, dredgers, and labour hired to salvage the container ship as well as the loss of revenue while the Egypt canal was blocked.

Shoei Kisen Kaisha Ltd., the owner, and the ship’s insurers both initially offered to only pay $150 million.

Ever Given has blocked the Suez Canal for almost a week in March and disrupted global shipping.