In a renewed effort to revive transit volumes, Egypt has announced a 15% discount on Suez Canal fees for large containerships, starting May 15. The move follows signs of easing tensions in the Red Sea and a steep decline in canal revenue over the past year.
Strategic Discount Amid Security Reassessments
The 90-day discount applies to container vessels over 130,000 tonnes, whether laden or empty. Authorities are actively engaging with shipping operators to encourage a return through the Suez Canal, which has seen traffic drop since rerouting around the Cape of Good Hope became widespread due to Red Sea insecurity. While a recent ceasefire announcement has sparked cautious optimism, many operators remain reluctant to commit without more stability.
Revenue Plunge Spurs Urgent Response
Revenue from the canal dropped by nearly 60% in 2024, plunging from a record $10.3 billion to just under $4 billion. The Suez Canal Authority has ramped up dialogue with shipping companies and embassies, presenting modernization strategies and partnership opportunities. However, operators continue to weigh the discount against the risks and logistical challenges of reversing global fleet deployments.
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Source: Lloyd’s List
