Egypt Releases Cargo Ship That Blocked The Suez Canal After Reaching Multimillion-Dollar Deal With Owner

(Photo by MAHMOUD KHALED/AFP via Getty Images)

Jesse Stiller Contributor
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Egyptian authorities and the owners of the cargo ship that blocked the Suez Canal have reached a multimillion-dollar agreement that allowed the ship to be released from the country’s custody.

The Suez Canal Authority (SCA) and the owners of the Ever Given cargo ship signed a deal Wednesday morning that would allow for the cargo ship to safely leave the canal, The Wall Street Journal reported.

While the specifics of the deal were not immediately released, the SCA held a ceremony that marked the departure of the ship from the port which was broadcasted live on state television, the WSJ reported.

The ship was first impounded by Egyptian authorities in April after it became wedged in the Suez Canal, with authorities demanding a $900 million compensation penalty at the time in exchange for its release. (RELATED: Ill-Fated Mega Cargo Ship Drew A Penis In The Sea Before Getting Itself Wedged In Suez Canal)

A preliminary deal worth $200 million in compensation was struck between the two parties last month, the WSJ reported, but Egyptian media reported that the signed deal was much higher than the preliminary one and included a tug boat.

The ship is expected to undergo an inspection in Port Said before sailing to Rotterdam in the Netherlands and Felixstowe port in the U.K. to discharge its containers, the outlet reported.

The Ever Given was reportedly hit with strong wind gusts as it was passing through the Suez Canal in March, causing it to turn sideways and run aground, delaying maritime traffic for several days and disrupting global trade, however, disputes arose as to exactly what happened and who was at fault.

At the peak of the blockage, 200 ships were stuck outside of the Canal, which severely impacted global supply chains and caused some ships to consider taking a longer route around Africa’s Cape of Good Hope.