Increase in fees for the transit of ships through the Suez Canal from next year

The Suez Canal Authority has made new decisions regarding the canal transit fees, which will apply during the next Gregorian year 2023.

Lieutenant General Osama Rabieh, head of the agency, announced today, Saturday, a 15% increase in transit fees for all types of ships passing through the canal during 2023, while transit fees for both bulk carriers and cruise ships vessels will be increased by 10%, provided that the implementation of the planned increase will begin from early January next year.

Lieutenant General Rabi reaffirmed the authorities’ commitment to implement a balanced and flexible pricing and marketing strategy that serves the common interests of the authorities and their clients and takes into account global economic conditions and their various variables through clear mechanisms, including the assessment of ship transit fees. depending on the savings achieved by the channel for transit ships, in combination with navigational publications issued and updated by the authority. According to instantaneous variables for each category of transit ships, which allows adjustments to transit fees, and then effective intervention in the event of a change in navigation market conditions, where it is possible to provide channel crossing navigation services under a model policy that maintains the channel leadership and makes it the best, fastest and shortest choice for customers compared to other competitive methods.

Commenting on the reasons for the increase in transit fees for ships passing through the channel, the head of the department explained that the decision was made in light of the constant monitoring of market changes in the maritime transport sector, which monitors the continuation of the daily time charter categories for most types of ships to an unprecedented level and the expectations of their continued over the next year, assuming that crude oil tanker rental costs increased by 88% compared to the 2021 average, and LNG tanker rental costs increased by 11% compared to the 2021 average.

Lieutenant General Rabier added that the determination of the fees for the transit of ships through the Suez Canal depends on several factors, most notably the average prices of freight carriers for different categories of ships, pointing in this regard to the significant and consistent increase that freight carriers have recently recorded, especially ships -container ships compared to before the Corona crisis and this is reflected in the expectations of shipping lines to achieve high operating profits during 2023 in light of the ongoing impact of the global supply chain crisis and global port congestion, as well as shipping lines insurance for long-term contracts for delivery at a high level.

Lieutenant General Rabier identified the need to increase shipping transit fees in light of the current global inflation rate of more than 8%, which leads to an increase in the cost of operation and maintenance and provision of navigation services on the canal.

The head of the body concluded his speech by emphasizing the body’s ongoing commitment to supporting its clients, gaining their trust, intensifying communication with them and building on the consistent successes the body has made in solving various problems and overcoming the most difficult crises throughout history. its history by adopting an ambitious strategy for the development of navigational services for ships passing through the canal, and by adopting all the measures and policies that allow the Suez Canal to play its vital role in serving global trade traffic.

Source: RT

Related Stories