A 64,000-tonne oil tanker ran aground in the Suez Canal sparking a massive recovery operation on the major international trade route.
Tug boats were sent to help free the Affinity V with immediate fears that there could be a repeat of the Ever Given ship that was stuck for three months in Egypt.
World trade ground to a halt with the Ever Given, that had 18,300 containers on board, completely blocking the Suez Canal last year.
Now the Singapore-flagged Affinity V ran aground with GPS imaging showing the ship blocking the entire width of the canal in a similar way to the Ever Given.
Five tug boats were seen working on releasing the ship on Wednesday night which was blocking the canal at the 143 kilometre channel and preventing traffic to pass.
Now the Suez Canal Authority has said that the ship has been freed and refloated.
It took around five hours to free the stranded ship and that traffic on the Suez Canal has already returned to normal.
The cause of the accident has been put down to a problem with the rudder and the steering system.
The Suez Canal Authority tweeted: "Lieutenant-General Osama Rabie, head of the Suez Canal Authority, announced today, Thursday, the success of the rescue units and the authority’s tugs in saving and floating the 64 thousand-ton fuel tanker AFFINITY.
"It ran aground at the 143 kilometre channel due to a technical malfunction with the ship’s rudder, which caused the loss of the ability to steer and left the ship stranded."
The canal authority explained that five tugs were used in the rescue mission to quickly return shipping to normal.
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It tweeted: "Immediately after the accident, a working group was formed under the leadership of the Lieutenant-General, the head of the authority and the navigation monitors.
"Coordination was made with the Port Tawfiq Movement Office to take the necessary measures with five locomotives and the authority's rescue team sent quickly deal with the situation and float the ship."
A ceremony was held last year when the Ever Given was finally freed after 106 days stranded.
It had become grounded in the southernmost, single-lane stretch of the canal amid high winds on March 23.
When the vessel became stuck, experts warned of price hikes in UK shops after the blockage sent world trade into a tailspin.
Shoppers were warned they could struggle to get hold of products ranging from screws to garden furniture.
Experts said the “phenomenal impact” of the stuck Ever Given will be felt for “months”.