image copyrightReutersimage captionThe Ever Given has been held at the Great Bitter Lake near Ismailia for three months

A huge container ship that blocked the Suez Canal in March – disrupting global trade – is finally leaving the waterway after Egypt signed a compensation deal with its owners and insurers.

Witnesses say the Ever Given weighed anchor shortly after 11:30 local time (09:30 GMT) and headed north towards the Mediterranean escorted by tugs.

The ship has been impounded for three months near the canal city of Ismailia.

Terms of the deal were not disclosed but Egypt had demanded $550m (£397m).

The 193km (120-mile) Suez Canal connects the Mediterranean Sea at the canal's northern end to the Red Sea in the south and provides the shortest sea link between Asia and Europe.

But the vital waterway was blocked when the 400m-long (1,312ft) Ever Given became wedged across it after running aground amid high winds. Global trade was disrupted as hundreds of ships were stuck in the traffic jam.

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The container ship was refloated following a six-day salvage operation that involved a flotilla of tug boats and dredging vessels. One person was killed during the operation.

image copyrightEPA/MAXAR TECHNOLOGIESimage captionA satellite photograph reveals how the Ever Given was wedged across the canal

Since then, the Suez Canal Authority (SCA) has been seeking compensation from the Ever Given's Japanese owner Shoei Kisen for the cost of the salvage operation, damage to the canal's banks and other losses.

The SCA initially asked for $916m compensation, including $300m for a salvage bonus and $300m for loss of reputation. But UK Club – which insured Shoei Kisen for third-party liabilities – rejected the claim, describing it as "extraordinarily large" and "largely unsupported".

media captionThe stranded container ship is seen finally on the move and no longer blocking the canal

The SCA later lowered its demand to $550m. The final settlement, which has not been revealed, was agreed a few days ago and signed on Wednesday ahead of the ship's release.

As the ship finally resumed its journey on Wednesday, a spokesperson for Shoei Kisen said the company would continue to be "a regular and loyal customer" of the Suez Canal Authority.

The vessel, with an Indian crew, is still loaded with about 18,300 containers. It is due to undergo safety checks at Port Said before sailing to Rotterdam in the Netherlands and then to the UK port of Felixstowe where it will offload its containers, the Wall Street Journal reported.