Egypt Watch

Egypt intends to release EVERGEEN after agreeing on compensation

Insurance sector sources said that insurance companies would bear most of the delinquent ship crisis costs that disrupted traffic in the Suez Canal.

Head of the Suez Canal Authority, Osama Rabie, said in an interview with Egyptian TV that negotiations are underway with the ship over the cost of releasing it.

The sources explained that compensation is expected to reach hundreds of millions of dollars after global supply chains were in a state of confusion after the Ever Given ship ran aground in the canal on March 23, according to Reuters news agency. In conjunction with this, reports indicated that Egypt is moving to release the Ever Given giant container ship, which closed the Suez Canal for nearly a week, once an agreement is reached on compensation for losses.

The Ever Given closed the Suez Canal for six days, which led to disruption in global markets. The Suez Canal Authority lost $15 million per day. Ships often have protection and indemnity insurance, which covers claims by parties in matters such as environmental damage and human injury, and separate insurance plans cover material damage to the ship’s hull or equipment.

Rabie said last month that the losses and damages caused by the ship’s stranding could reach about $ one billion, but the exact number will become clear after the investigation, though is not clear when it will be completed.