The Suez Canal Authority (SCA) has proposed an out of court settlement with the owners of the giant container ship that blocked the waterway earlier this year that includes an initial deposit with the balance payable by letters of credit (L/Cs).

The authority has said it is still seeking an out of court settlement with the owners of the Ever Given container ship despite an ongoing litigation process through the Ismailia first instance economic court.

Settlement terms

The SCA is now proposing a settlement of US$550 million from the vessel's Japanese owners, Shoei Kisen, payable by an initial US$200 million deposit followed by US$350 in L/Cs.

The authority initially said it would settle for US$916 million as compensation for the six day blockage of the canal in March.

Court adjournment

Ismailia first instance economic court has issued a ruling concerning the lawsuit against Shoei Kisen and several other parties for it to be adjourned.

The ruling was based on a request submitted by the SCA and the shipowners to adjourn the case to seek an out of court settlement.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.