Egypt’s Suez Canal Slashes Fees by 15% for Large Container Vessels
-
Alaina
- . May 13, 2025
- . Update: May 15, 2025 6:19 pm
The Suez Canal Authority of Egypt has launched an offer to give discounts of 15% on transit fees for container ships carrying more than 130,000 tons net tonnage, which were launched on 15th of May for three months. The tactical step will help regain the maritime traffic after recent security scares in the region.
This temporary reduction would be applied on all qualifying vessels irrespective of their cargo status as the authorities attempt to compensate for the increased insurance premiums that are being borne by the shipping companies when passing through the Red Sea that has been declared a high risk zone by the insurers.
This decision comes after important talks between Suez Canal Authority chief Osama Rabie and the representatives of the shipping agency that proposed the introduction of financial rewards to offset the higher operating costs.
The canal, an important source of foreign currency for Egypt registered a dramatic fall in its revenues in the fourth quarter of 2023:
- Revenues sunk to $880.9 million from $2.4 billion year on year
- Yemen’s Houthi rebels targeted shipping causing havoc in the region.
- Vessels that are rerouted from around the Cape of Good Hope of Africa to avoid the region.
The development comes at the time of a United States-Houthi ceasefire brokered by Oman. In this agreement, the U.S has stopped bombing campaigns in Yemen while the Houthis promised to stop attacking American ships. However, the accord does however not include Israeli ships thus leaving some security concerns unresolved.
