News

Egypt raises fees for ships transiting through the Suez Canal

The Suez Canal Authority said on its website that the increases are in line with the significant growth in global trade and cited the development of the canal and the improvement of the transit service.

According to the statement, the transit fees for liquefied gas carriers, chemical carriers and other liquid material carriers increased by 10 percent.

She explained that the transit fees for ships transporting vehicles, natural gas and general cargo, as well as multi-purpose vessels, will rise by 7%, while an increase of 5% will be imposed on tankers of petroleum products, crude oil and dry bulk vessels.

The authority indicated the possibility of adjusting the increases at a later time or canceling them according to changes in global freight traffic, according to the Associated Press.

Canal authorities are working to widen and deepen the southern part of the waterway, as a huge ship ran aground and closed the canal in March 2021.

The closure of the waterway, which lasted 6 days, has disrupted global shipping, forcing some ships to take the long alternative route around the Cape of Good Hope in the southern tip of Africa, which requires additional fuel and other costs, while hundreds of other ships wait in place until traffic returns. in the channel.

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

The canal, which opened in 1869, is a source of national pride for Egypt and a major source of hard currency.

The authorities said that 20,649 ships passed through the canal last year, an increase of 10 percent compared to 18,830 ships in 2020. The canal’s annual revenue reached $6.3 billion in 2021, the highest in its history.

Last month, 1,713 ships passed through the waterway, generating $545 million in revenue, according to Major General Osama Rabie, head of the Suez Canal Authority.

In February of last year, 1,532 ships passed through the canal, generating revenue of $474 million.

The shipping industry continues to face pandemic pressures, and Russia’s war on Ukraine is likely to heighten global economic concerns.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button