News / Suez cuts transit fees for US-Asia ships to combat cost-saving allure of Cape of Good Hope

Cape of Good Hope © Pitchi

The Suez Canal Authority (SCA) has reacted to the increasing number of backhaul voyages being routed to Asia via the Cape of Good Hope by offering cheaper tariffs.

The reduction in transit fees follows reports that over 100 cargo vessels have chosen the longer route via the southern tip of Africa in the final quarter of last year, resulting in a substantial loss of revenue for the Egyptian government.

The diversions were also a blow to the authorities and private investors who contributed ...