Cash-strapped Egypt hikes Suez Canal transit fees for ships

Cairo: Cash-strapped Egypt increased transit fees Tuesday for ships passing through the Suez Canal, one of the world’s most crucial waterways, with hikes of up to 10 percent, officials said.

The Suez Canal Authority said on its website the increases were “in line with the significant growth in global trade” and cited the canal’s “development and enhancement of the transit service”.

   

According to a statement, transit fees for liquefied petroleum gas, chemical tankers, and other liquid bulk tankers increased by 10 percent. Vessels carrying vehicles, natural gas and general cargo, as well as multi-purpose vessels, will see an increase of 7 percent, while a 5 percent increase will be imposed on oil and crude tankers and dry bulk vessels, it said.

The hikes could later be revised or called off, according to changes in global shipping, it added.

Canal authorities have been working to widen and deepen the waterway’s southern part, where a hulking vessel ran aground and closed off the canal in March 2021.

The six-day blockage disrupted global shipment. Some ships were forced to take the long alternate route around the Cape of Good Hope at Africa’s southern tip, requiring additional fuel and other costs. Hundreds of other ships waited in place for the blockage to end.

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