News / Freight rate bonus for carriers leads to 15% hike in Suez Canal fees

Photo: Suez Canal Authority

Suez Canal Authority (SCA) chairman and MD Ossama Rabiee has announced a 15% hike in canal charges next year.

The 15% hike will apply to all vessels, except cruise ships and bulk carriers, which will see a 10% increase, said Mr Rabiee, in “a balanced and flexible strategy that will compensate the SCA for rising costs in a volatile global economy”.

He added: “Determining the Suez Canal transit tolls rests on a number of pillars, most significant of which is the average freight rates for various types of vessels.

“In this regard, there have been considerable and consecutive increases, especially in containership freight rates, compared with those recorded before the Covid-19 pandemic, which will be reflected in the high operational profits that will be achieved by navigational lines throughout 2023.”

The SCA also pointed to rising energy costs for both crude oil and LNG and global inflationary pressures as also being behind the substantial boost in its prices.

In a veiled comment on the impact of the Ever Given crisis of last year, Mr Rabie said the SCA was “building upon the authority’s consecutive achievements in dealing with various challenges and managing crises that were some of the most difficult throughout its long history by means of adopting ambitious strategies relevant to developing the navigational services provided to the vessels transiting the canal, and taking measures that enable the Suez Canal to carry out its vital role serving global trade”.