The significant growth in global trade made Egypt increase transit fees on Tuesday. The new tariffs will be paid by ships passing through the Suez Canal. For Egypt, the canal remains a source of both national pride and foreign currency.
The Suez Canal Authority confirmed on its website that one of the world’s most crucial waterways hikes its tariffs of up to 10%. According to officials, the canal’s development and enhancement of the transit service requires additional financial attention.
From Tuesday, transit fees for liquefied petroleum gas, chemical tankers, and other liquid bulk tankers increased by 10%. Vessels carrying vehicles, natural gas and general cargo, as well as multi-purpose vessels, will see an increase of 7%, while a 5% increase will be imposed on oil and crude tankers and dry bulk vessels.
Commenting on the news, the Suez Canal’s authorities said that the hikes could later be revised or called off, it depends on changes in global shipping. After March 2021, Canal authorities have been working to widen and deepen its southern part to avoid possible traffic jams, according to OutlookIndia.
Suez Canal in figures
The canal authorities reports on 20,649 vessels passed through the canal last year, a 10% increase compared to 18,830 vessels in 2020. The annual revenues of the canal reached $6.3 billion in 2021, the highest in its history.
Last month, 1,713 vessels passed through the waterway, bringing in $545 million in revenues, according to Adm Osama Rabie, head of the Suez Canal Authority. In February last year, 1,532 vessels passed through the canal, bringing in $474 million. The shipping industry is still under pressure from the pandemic, and Russia’s war on Ukraine is likely to add to global economic concerns.