COVID19 Forces New Payment Structure Changes in the Suez Canal!

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Suez Canal Authority (SCA) once again takes a positive step towards its customers’ best interest. This time it steps up to help the LNGs tankers to overcome the (COVID -19) pandemic with a new payment structure.

SCA responds in the interest of maritime market as demand falls

The outbreak of ( COVID -19) has disrupted the global maritime market.  As a result Suez Canal Authority (SCA) has issued two Periodicals concerning LNG tankers:

1) Amendment of circular (7/2017) and the suspension of the periodical issued on 12/09/2019, the new periodical includes increase in the discount rebates.

2) Amending the rebate granted to LNG carriers transiting the Suez Canal as per article two of circular (2/2015) to be 30% of Suez Canal normal transit tolls rather than 25%.

SCA’s encouragement for LNG tankers

More specifically, as an encouragement for LNG tankers operating between the “American Gulf (starting from Miami port and its western ports within the “American Gulf”), ports South of the “American Gulf, “Arabian Gulf(ports within the Arabian Gulf starting from the port of Muscat), India and eastern ports at Asia to pass through Suez Canal.

Also, Suez Canal Authority has decided the following:

1.Suspension of the periodical issued on 12/09/2019 renewing & amending circular (7/2017). 

2.Amending article one of circular(7/2017) to read as follows: 

LNG tankers (laden/ ballast) operating between the “American Gulf(starting from Miami port and its western ports within the “American Gulf), ports South of the “American Gulf and the below areas at Asia shall be granted the following percentages:

a) Arabian Gulf (ports within the Arabian Gulf starting from Muscat port) and ports at west of India till port of Kochi a rebate of 35% of Suez Canal normal tolls.

b) Eastern ports to the port of Kochi up to Singapore a rebate of 55% of Suez Canal normal tolls.

c)Singapore ports and its eastern ports a rebate of 75% of Suez Canal normal tolls. 

3.”Article Two” and “Article Three” of the circular shall remain in force. 

4.This periodical is applicable to LNG carriers transiting the Suez Canal starting from the 1st of April 2020 till the 30th of June. 

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Source: SCA

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