Egypt to Raise Suez Canal Transit Costs

0
277

A ship passing through the Suez Canal. Photo Credit | Egyptian Regulatory Reform and Development Activity (ERRADA)

The Suez Canal Authority (SCA) announced an increase to vessel transiting costs effective by the beginning of May 2022. This decision was adopted due to a “significant growth in global trade, the improvement of ships’ economics, waterway development and the enhancement of the transit services.”

The Suez Canal Authority (SCA) website published a series of amended regulations with regards to transit costs for “special floating units,” cargo and oil-laden vessels.

The term Special Floating Units refers to yachts, dredgers, fishing vessels, warships, tugs, research ships, and all floating units or vessels that specialise in purposes and tasks other than the transport of goods and passengers between ports.

The announced amendments included additional fees for special floating units, crossing the Suez Canal in both directions, now increased to 14 percent of the normal transit fees. As for crude oil-laden and petroleum products-laden tankers, the additional fees have increased to 15 percent of the normal transit fees.

Additionally, vessels carrying general cargo, vehicles and heavy lift vessels, as well as multi-purpose vessels, will see an increased surcharge of 14 percent up from 7 percent.

“These surcharges are temporary and can be either amended or cancelled according to the maritime industry market conditions,” according to the Suez Canal Authority (SCA) website.

Osama Rabie, head of the Suez Canal Authority (SCA), confirmed a 15.1 percent increase in the revenues generated by the Suez Canal during February 2022, which amounts to USD 545.5 million (EGP 9.9 billion).

The transit fee hikes come as public finances come under increasing pressure due to disruptions in the global supply chain, and rising international commodity prices caused by the conflict in Ukraine

Currently, the Suez Canal accounts for 10 percent of global maritime trade with record revenues reaching USD 6.3 billion (EGP 115.4 billion) last year alone.

The post Egypt to Raise Suez Canal Transit Costs first appeared on Egyptian Streets.

Source: egyptianstreets