Suez Canal court case delayed in attempt to reach settlement

The Suez Canal Authority is seeking compensation after the 'Ever Given' ship became stuck in the waterway, blocking a main global shipping route

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  This satellite imagery released by Maxar Technologies shows a close up overview of the MV Ever Given container ship and tugboats in the Suez Canal. AFP / Maxar Technologies

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  The guided-missile cruiser USS Monterey (CG 61), left, and the guided-missile destroyer USS Thomas Hudner (DDG 116) sail behind the aircraft carrier USS Dwight D. Eisenhower (CVN 69) during a Suez Canal transit, in this picture taken April 2, 2021 and released by U.S. Navy. Reuters

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  In this photo released by Suez Canal Authority, the Ever Given, a Panama-flagged cargo ship, is pulled by one of the Suez Canal tugboats, in the Suez Canal, Egypt. AP Photo

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  A spectator waves as the Ever Given container ship moves along the Suez Canal towards Ismailia after being freed from the canal bank in Suez, Egypt. Bloomberg

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  A man waves at the Panama-flagged MV 'Ever Given' container ship as it is tugged in Egypt's Suez Canal after it was fully dislodged from the banks, near Suez city. AFP

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  A view shows Ever Given container ship in Suez Canal in this Maxar Technologies satellite image. Satellite image ©2021 Maxar Technologies/Handout via Reuters

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  A handout photograph made available by the Suez Canal Authority shows the Ever Given container ship after it was refloated in the Suez Canal, Egypt. EPA

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  A handout photograph made available by the Suez Canal Authority shows the Ever Given container ship after it was refloated in the Suez Canal, Egypt. The head of the Suez Canal Authority announced on 29 March that the large container ship, which ran aground in the Suez Canal on 23 March, is now free floating after responding to the pulling maneuvers. EPA

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  People watch Ever Given, a Panama-flagged cargo ship, that has been stuck sideways and blocked traffic in Egypt's Suez Canal, move past after it was set free by salvage teams. AP Photo

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  People watch as the container ship 'Ever Given' is refloated, unblocking the Suez Canal in Suez, Egypt. This morning the container ship came partly unstuck from the shoreline, where it ran aground in the canal last Tuesday, and later resumed its course shortly after 3pm local time. Getty Images

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  A view of the Panama-flagged MV 'Ever Given' (operated by Taiwan-based Evergreen Marine) container ship, a 400-metre- (1,300-foot-)long and 59-metre wide vessel, as it remains lodged sideways impeding traffic across Egypt's Suez Canal waterway. AFP

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  Ship Ever Given, one of the world's largest container ships, is seen after it was fully floated in Suez Canal, Egypt. Suez Canal Authority/Handout via Reuters

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  The container ship 'Ever Given' is refloated, unblocking the Suez Canal in Suez, Egypt. This morning the container ship came partly unstuck from the shoreline, where it ran aground in the canal last Tuesday, and later resumed its course shortly after 3pm local time. Getty Images

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  The container ship 'Ever Given' is moving in the Suez Canal, Egypt. The Suez Canal Authority on 29 March said that traffic is to resume after the large container ship 'Ever Given' was refloated. EPA

A court case over the six-day blockage of the Suez Canal has been postponed to allow time for the owners of the huge Ever Given cargo ship to settle with authorities.

The two-week extension came as the Suez Canal Authority's legal team said it had received an offer of compensation from Japanese chartering company Shoei Kisen Kaisha.

In the meantime, the 400-metre-long ship, impounded after it was freed from the canal on March 29, will remain detained at the Great Bitter lake at the southern end of the canal.

The grounding of the Ever Given blocked one of the world's busiest trade routes, preventing hundreds of ships from passing through the narrow canal and disrupting global trade.

The head of the authority’s legal team, Khaled Abu Bakr, said a more “reasonable offer” had been made to the SCA and new negotiations would begin in the next two weeks.

He said the new offer was being studied and Shoei Kisen Kaisha has been given a deadline of July 4 to hand over the compensation.

The Japanese company did not confirm an offer had been made or how much it was.

After the blockage of the 193-kilometre canal was cleared, the SCA demanded $916 million for the salvage effort that claimed the life of a crew member, damaged the banks of the canal, and caused a huge loss in revenue.

But the SCA’s demands were disputed by the ship’s owners, who made a counter offer of $150m. The owners also demanded the ship be released but a court in the Suez Canal city of Ismailia ruled to keep it moored till the dispute was resolved.

The SCA’s compensation claim was later reduced to $550m but this was also disputed by the ship’s owners.

The case has been postponed once already, on May 29, to allow for negotiations between both parties.

Despite some heated accusations being fired by both sides at the start of the legal proceedings, one of the ship’s insurers, UK Club, said negotiations were headed in a more "serious and constructive" direction.