Egypt has increased the cost of transit through the Suez Canal. This increase is in line with the significant growth in world trade according to the Suez Canal Authority (SCA)
The Suez Canal is one of the most important waterways in the world. 193.3 km long, 280 to 345 m wide and 22.5 m deep, it links, via three natural lakes, the port city of Port Said in the Mediterranean Sea to the city of Suez in the Gulf of Suez. Indeed, the country of the Pharaohs has increased the transit fees for ships passing through this canal. This increase is up to 10%. Through its website, the Canal Authority said the increases were “consistent with the significant growth in world trade” and called for the development and improvement of the canal’s transit service.
Vessels carrying vehicles, natural gas and general cargo, as well as multipurpose vessels, will see a 7% increase, while tankers and dry bulk vessels will see a 5% increase. Similarly, transit fees for vessels carrying liquefied petroleum gas, chemicals and other liquid bulk products have increased by 10%. However, these increases could be revised or cancelled at a later date, depending on the evolution of global shipping.
Also read: Egypt: Suez Canal makes record revenue of US$6.3 billion
The Suez Canal is recovering from its March 2021 obstruction
In March 2021, the Suez Canal traffic was blocked for 6 days by the bad maneuver of the Ever Given, a container ship. This blocking was carried out by the Taiwanese shipowner Evergreen, which got in the way. Inaugurated in 1869 between the Red Sea and the Mediterranean Sea, the Suez Canal sees the passage of about 10% of the world’s maritime trade and represents one of the primary sources of currency for Cairo. For example, a one-day blockage could result in losses of approximately $15 million.
This rare incident, had paralyzed a part of the world trade. It should be noted that in 2020, nearly 19,000 vessels transited this route, which represents an average of 51.5 vessels per day. With the increase in traffic, the canal has become Egypt’s third largest source of foreign exchange. Main foreign source of income for Egypt, the Suez Canal brought in 2021, about 5.5 billion euros, its highest turnover in history.