Egypt has decided to escalate fees for ships passing through the Suez Canal, one of the world’s most crucial waterways, by 15% in 2023, a statement by Canal Authority’s Chairman Osama Rabie confirmed on Saturday.
The statement added that the authority will add 15% to the fees for tankers carrying oil and petroleum products, and 10% for dry bulk carriers and cruise ships. The fee increase will be applied starting Jan 1, 2023.
In his statement, Rabie confirmed that the Authority is keen to balance the interest of both itself and that of its clients by implementing a flexible strategy on pricing and marketing.
It reads, “The strategy also takes into consideration the various changes in global economy through clear mechanisms that include calculating a vessel’s transit tolls depending on the savings it achieves by transiting through the Canal.”
He termed the hikes as “inevitable and a necessity.” He attributed the rising expense of the waterway’s operations, maintenance, and maritime services to the world’s expanding inflation rates.
Egypt benefits from the Suez Canal’s trade as around 10% of global trade, including 7% of the world’s oil, flows through the Suez Canal. It is the most Arab populous country with over 103 million people.
With huge economic challenges and low foreign currency, the Arab country needed to buy raw materials like grain and fuel.
Authorities reported that 20,649 vessels went through the canal in 2018, an increase of 10% from the 18,830 vessels that sailed through in 2020. The greatest yearly income total in the canal’s history was $6.3 billion in 2021.
Since a large ship ran aground and blocked the canal in March 2021, authorities have been working to widen and deepen that section of the waterway. The six-day stoppage prevented international shipping.
The waterway was momentarily obstructed on August 31 by an oil tanker that ran aground before being cleared.
