The Ever Given's owners have struck a deal with Egypt to free the ship months after it was seized, insurers say

Container ship Ever Given stuck in the Suez Canal, Egypt on March 27, 2021.

Kristin Carringer/Maxar

• The Ever Given is on the brink of being released after 71 days, according to the ship's insurers.
• The ship's owners have reached an agreement in principle with the Suez Canal Authority.
• The ship got stuck in March, was freed, but was then impounded while Egypt sought compensation.
• See more stories on Insider's business page.

The Ever Given's owners have reached an agreement in principle with the Suez Canal Authority (SCA) for the release of the ship, the ship's insurers announced Wednesday.

The massive container ship caused an international shipping crisis at the end of March, when it grounded in the Suez Canal, blocking the crucial route.

The efforts to free the ship lasted six days, involving excavators, tugboats, specialized dredgers and the help of a high tide in a spectacle that captivated the world's media.

Even after being unstuck, it was never allowed to leave the Suez Canal. First it was held for inspections, then on April 13, Egypt impounded the ship, demanding compensation.

It has been held in the Great Bitter Lake, a body of water off the canal, where it has awaited with most of its crew on board while the parties negotiate.

The ship's insurers, the UK Club, released a statement Wednesday saying that the ship's owners - Japanese company Shoei Kisen Kaisha Ltd - and the SCA are working "to finalise a signed settlement agreement as soon as possible," which will lead to the release of the vessel.

Egypt's demands for compensation started out at nearly $1 billion, but have steadily reduced as time passed. The UK Club has been skeptical of the scope of the demand, a view that was reflected by some insurance industry insiders, Lloyd's List reported.

The UK Club continued to object after it was reduced to $600 million.

Most recently, Egypt asked for $550 million on the condition that $200 million of that be paid upfront, Egyptian newspaper Ahram Online reported.

It is unclear what the current agreement in principle entails.

The SCA did not immediately respond to Insider's request for comment.

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