Giant Ever Given Ship That Blocked Suez Canal Is Freed After Months-Long Fight Over Compensation

Topline

The Ever Given, the giant container ship that blocked one of the world’s most important shipping lanes for days in March has finally been freed and has set sail Wednesday after months of protracted legal wrangling over compensation between the ship’s owners, insurers and Egyptian officials.

The Ever Given was stuck in the Suez Canal for six days in March.

DigitalGlobe/Getty Images

Key Facts

The Ever Given reportedly weighed anchor Wednesday, leaving the position in Great Bitter Lake it has held since being freed from the Suez Canal three months ago.

Egyptian officials impounded the 400m (1,300ft) boat as they pursued over $900 million in compensation for the ship’s rescue, losses and damages for blocking the shipping lane, a figure that the vessel’s insurer rejected as excessive.

The Suez Canal Authority said it had reached a deal with the ship’s owners on Monday, though did not reveal details on the settlement.

The vessel, led by two tugs, is set to continue its journey through the canal and on towards the Mediterranean.

Key Background

The sky-scraper-sized Ever Given became wedged across the Suez Canal in late March, blocking traffic along one of the world’s busiest shipping lanes in both directions for nearly a week as teams raced to dislodge it. Around 20,000 ships travel through the canal a year and about 12% of global trade. The disruption sparked a crisis in international trade, with shipping delays, oil price rises, a surge in shipping costs and delayed traffic snarling ports for months as ships diverted or delayed arrived off-schedule. The issue highlighted the fragility of global supply chains and could snarl up courts for years as the many insurers and businesses around the world try to recoup costs.

What To Watch For

The Ever Given is now headed to Egypt’s Port Said for safety checks, before sailing to the Netherlands and the U.K. It has around 18,300 cargo containers aboard which will arrive months later than expected. Reportedly, the ship’s cargo includes: lemons, tofu, nails, camping equipment, swimwear alongside gear from Lenovo, Dixons and Ikea.