Suez Canal to raise transit fees in 2023

CAIRO－The Suez Canal's transit tolls will increase by 15 percent for all types of vessels and 10 percent for dry bulk and cruise ships starting next year, announced the Suez Canal Authority, or SCA, in a statement on Saturday.

The authority said rising energy prices, freight rates and daily charter rates for ships, predicted to continue next year, are the main reason for raising transit tolls along the vital canal connecting the Mediterranean Sea to the Red Sea.

"The (tolls) increase is inevitable and is a necessity in light of the current global inflation, which translates into increased operational costs and the costs of the navigational services provided in the canal," said SCA Chairman Ossama Rabiee in the statement.

He said the SCA adjusted the tolls through clear mechanisms incorporating the changes in the maritime transport market, saying the canal remains the most efficient route compared to alternative routes.

About 10 percent of global trade, including 7 percent of the world's oil, flows through the Suez Canal.

Authorities said 20,649 vessels passed through the canal last year, a 10 percent increase compared with 18,830 vessels in 2020. The annual revenue of the canal reached $6.3 billion last year, the highest in its history.

Canal authorities have been working to widen and deepen the waterway's southern part, since a hulking vessel ran aground and closed off the canal in March last year. The six-day blockage disrupted global shipment.

According to statistics of the canal authority, the Suez Canal lost $12 million to $15 million in daily revenues during the blockage.

On Aug 31, an oil tanker ran aground and briefly blocked the waterway before it was freed.

Xinhua - Agencies