- Suez Canal Authority (SCA) has published new resolutions concerning the fees of the transiting ships for ships up to 6%
- They will adopt many marketing strategies and apply flexible pricing for each type of vessel passing through here based on estimating the wharf fees of ships transiting through the region.
“We will increase the toll rate for ships transiting through the canal to 6% in 2022 from the current toll rate”, said Osama Rabie, chairman of the Suez Canal Authority (SCA).
The new fee will take effect in February 2022 and apply to all vessels passing through this canal, except cruise ships, liquefied natural gas ships.
The Port Authority’s Chairman explained that the stabilization of transit fees for the cruise ships was because the Covid-19 pandemic hardest hit this type of ship.
And liquefied natural gas (LNG) fluctuates constantly in the market of this commodity. According to Reuters, the November delivery price on the Dutch TTF exchange increased about 400% since the beginning of the year and was the highest level ever. Spot prices in Asia have hit their highest since 2009.
The Suez Canal Authority has announced that it will adopt many marketing strategies and apply flexible pricing for each type of vessel. They base their calculations on global economic conditions and their variability by estimating the wharf fees of ships transiting through the region.
The strategy will provide navigational services for transiting through the canal, which will be integrated with the navigational publications issued and renovated by the authority, according to the immediate variables for each class of the transiting vessels.
The SCA President clarified that decisions about transit fees through the Suez Canal and flexible marketing policies must be researched extensively based on the shipping market and global trade fluctuations, as well as considering periodic reports, recommendations issued by organizations, etc.
Suez Canal’s contribution to the economy
Built in 1869, the Suez Canal is the most important shipping route connecting Asia and Europe. Without this maritime route, it would take many more weeks for ships to circumnavigate the Cape of Good Hope (Africa). According to data compiled by SCA, transportation through the Suez Canal accounts for 12% of global trade in 2020.
Egyptian authorities announced in July 2021 that the Suez Canal had generated a record $5.4 billion in revenue for the financial year ending June 2021, despite the impact of the COVID-19 pandemic on the country’s economy. World trade and the stuck incident of the container shipping ship Ever Given caused travel on this maritime route to be blocked for six days in March 2021.