Latest market news

Suez Canal, insurers reach Ever Given agreement

  • 23/06/21

The Suez Canal Authority and the UK P&I Club have come to an agreement over the insurance payments for the Ever Given.

The agreement is currently at the "in principal" stage and so other details have been kept confidential as the Club is working with the Canal Authority and other insurers on the final details and signing the document.

Once the agreement is finalised the Ever Given will be released from where it is being held in the Great Bitter Lake — a large lake between two sections of the Suez Canal.

On 20 June, all parties agreed to adjourn a hearing at the Ismailia Economic Court of First Instance in order to take the necessary time to reach a final and amicable solution, the UK P&I Club said.

The current discussions have taken place over the last 15 days and appear to have reached a resolution.

The Suez Canal Authority initially made a claim for $916mn on 7 April 2021.

The UK P&I Club said: "The Ever Given's owners and their P&I and hull and machinery insurers fully acknowledge that the [Suez Canal Authority] is entitled to compensation for their legitimate claims arising out of this incident. We have insured the vessel for certain third-party liabilities of the [Suez Canal Authority]'s claims."

The Ever Given became lodged in the bank of the Suez Canal on 23 March 2021 and was refloated on 29 March.

The six-day blockage left a significant backlog of ships waiting to transit the canal. Leth Agencies said that 367 ships were waiting to transit the canal at the time the vessel was freed.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more