The Suez Canal Authority(SCA) reduces its toll tariff after facing a major shrink in canal traffic.
In 2015, the Suez canal faced a major shrink in tariff as the container lines took the cape of good hope route avoiding Egypt to save cost. Historically low fuel prices moved the ship owners to take a little longer route than pay the huge toll. Comparatively taking the good hope route was found to be cheaper. Additionally, a survey from SeaIntel, stated that more companies could switch their back-haul services or head-haul runs away from the Egyptian passage in order to cut costs.
This discount of 30% is available only for containerships traversing the Suez Canal from the port of New York and its southern ports heading to southeast Asian ports. Here the term “southeast Asian ports” refers to the port of Port Kelang and its eastern ports as per SCA.
In order to avail this discount, carriers will have to submit a certificate from the port of origin and a statement of arrival at the next destination within 60 days of transiting the canal.
This discount is open from March 7th to June 5th 2016. Renewal or extension of the offer is at the discretion of SCA.