Japan’s Shoei Kisen Kaisha has increased its offer to settle a $550m insurance claim from the Suez Canal Authority (SCA).
The claim relates to the March grounding of the Shoei-owned 20,388-teu Ever Given (built 2018), which closed the Suez Canal for six days and disrupted world trade.
The Japanese shipowner's protection and indemnity insurer, the UK P & I Club, confirmed that a revised offer had been made during ongoing talks between the parties. The club said the details of the negotiations remain confidential.
UK P & I added that a request had been placed for an adjournment in legal proceedings in Egypt to allow parties to pursue an out-of-court settlement.
"During the negotiations a proposal was submitted that we believe satisfies all the requirements of the SCA," the insurer said.
"Accordingly, the owners and their insurers requested and confirmed to the Ismailia Economic Court of First Instance in today's hearing [20 June] their clear desire to adjourn the hearing to take the necessary time to reach a final and amicable solution that satisfies all parties."
The revised offer is likely to be higher than the initial $150m Shoei had reportedly offered to settle the claim.
Shoei and its insurers are represented in the negotiations specialist marine legal consultancy Stann Marine.
"Over the course of more than 15 days and in extended, long and arduous, but positive working sessions, negotiations are taking place between us and the committee assigned by the SCA on the grounding incident of Ever Given," Stann Marine director Faz Peermohamed said.
"Clearly this is a complicated casualty with several tentacles and we are working hard to get the ship to sail as soon as possible, which is a priority."
Moving closer
The parties now appear to be moving closer to a settlement after the SCA had initially demanded $916m in compensation immediately following the refloating of the Evergreen Marine-operated ship.
The Ever Given insurance pay out will largely be met by the UK P & I Club through the International Group of P & I Club's claims pool system, in addition to hull and machinery insurers.
TradeWinds earlier reported that cargo owners are putting pressure on the SCA to come to a settlement amid concerns over the condition of cargo on the vessel.
Cargo insurers representing $100m of cargo on board the vessel have started legal proceedings against the SCA. The Ever Given and its containers have been detained at Great Bitter Lake since 29 March.
A separate legal action has been brought by insurers in London to limit liability.
