Egyptian authorities and the owners of the massive EVER GIVEN vessel that blocked the Suez Canal in March have reached a preliminary deal ending months-long of compensation dispute.

The ship’s representatives made the announcement following reports that the Japanese owners —  Shoei Kisen Kaisha — made a new offer to the Suez Canal Authority (SCA) to end the compensation dispute several months since the 20,000 TEU containership ran aground  and blocked one of the world's major waterways for six days.

“Following extensive discussions with the Suez Canal Authority’s negotiating committee over the past few weeks, an agreement in principle between the parties has been reached,” Stann Marine Ltd., a London-based law firm for the Ever Given’s owners and insurers, said in an emailed statement.

It added that the two parties will finalize an agreement “as soon as possible,” and then, arrangements will be made to let the ship leave Egyptian waters — although financial details related to the transaction was not disclosed.

The ship’s insurer for third-party losses, the U.K. P&I Club, also confirmed the development in a separate statement.

“The UK Club is pleased to announce that, following extensive discussions with the Suez Canal Authority’s negotiating committee over the past few weeks, an agreement in principle between the parties has been reached,” it said on June 23. “Together with the owner and the ship’s other insurers we are now working with the SCA to finalise a signed settlement agreement as soon as possible.”

“Once the formalities have been dealt with, arrangements for the release of the vessel will be made,” it added.

The SCA earlier demanded a US$916 million compensation, which was later lowered to US$550 million — which would cover the cost for the salvage operation, costs of stalled canal traffic, and lost transit fees for the time that the massive container ship blocked the canal.

Shoei Kisen and insurers, however, argued that the demand is still too high compared to their US$150 million offer in compensation, which was rejected by the canal authority.

Since the 400-meter-long EVER GIVEN — one of the world’s largest container vessels — was freed on March 29, the Panama-flagged vessel, carrying US$3.5 billion worth of cargo, has been ordered by authorities to remain in a holding lake mid-canal as the parties continued to argue on the settlement.

Taiwan’s Evergreen Line had chartered the vessel, which was traveling from China to Rotterdam.

The Ismailia Economic Court adjourned the hearing to June 20 earlier as the vessel's owner submitted a new offer to settle the dispute out of court, the Suez Canal Authority said in a statement without providing further details.