Suez Canal transit fees to increase by up to 10%

Rise in Egyptian waterway charges comes into effect on March 1

Ships going through the Suez Canal will have to pay higher fees from March 1. Reuters

Transit fees through Egypt’s Suez Canal will be increased by up to 10 per cent from March 1, the waterway’s authority has confirmed.

The increase comes after a recent growth in global shipping in addition to extensive renovations that the 193-kilometre waterway is undergoing to improve navigability, the Suez Canal Authority said late on Sunday night.

In 12 separate announcements, the SCA issued a list of increases to be imposed on various classifications of ships which navigate the waterway.

A 5 per cent surcharge will be imposed on crude oil tankers, ships carrying petroleum goods and dry bulk vessels, the SCA said.

Additionally, the authority said a 7 per cent surcharge will be levied on vessels carrying liquefied natural gas, general cargo vessels, multipurpose, heavy-lift and multi-purpose heavy lift vessels. Roll-on/roll-off vessels, vehicle carriers and special floating units will also be subject to a 7 per cent surcharge.

However, the largest increase in fees, of 10 per cent, was announced for liquefied petroleum gas carriers and vessels transporting various kinds of chemicals.

The authority had announced in November that all transit fees through the canal would be increased by 6 per cent starting this month.

SCA chairman Admiral Osama Rabie said at the time that LNG vessels and cruise ships would be excluded from that increase because of their affiliation with two of Egypt’s most vital industries, tourism and natural gas.

The authority announced an ambitious plan to update portions of the canal after the Ever Given incident, when the 400-metre container ship ran aground in the waterway, blocking maritime traffic through the Suez for six days last March.

The incident caused millions of dollars in lost revenue and made international headlines for months.

More than 12 per cent of the world’s maritime traffic travels through the Suez Canal every year.