Egypt Increases Transit Fees for the Suez Canal

Egypt announced on Saturday that it will increase transit fees for vessels, especially oil-laden tankers, going through the Suez Canal, one of the most important waterways in the world.

The Suez Canal Authority said on its website that it will increase the standard transit fees for oil- and petroleum-laden vessels from 5% to 15%.

It was stated that the increases will go into effect on May 1 and may be altered or canceled in the future based on developments in global shipping.

According to the canal, the new rise modifies the March surcharge hikes imposed on vessels transiting the channel.

The canal announced that the surcharges for chemical tankers and other liquid bulk tankers will increase to 20% from 10%, while the surcharges for laden and ballasted dry bulk vessels will increase to 10%.

According to the canal, vessels hauling vehicles, general cargo, high lift vessels, and multi-purpose vessels will see a 14% rise, up from 7%.

It was stated that ballast crude oil and oil product tankers traversing the Canal are still obliged to pay an additional 5% of the standard transit fees.

According to the canal's website, the hikes are "in keeping with the major expansion in world trade... and the development of waterways and the improvement of transit service."

Authorities have been working to enlarge and deepen the canal's southern section since March 2021, when a massive ship went aground and stopped the canal. The six-day obstruction hampered global shipment.

The Suez Canal, which connects the Mediterranean and Red oceans, transports around 10% of worldwide trade, including 7% of global oil. The canal, which initially opened in 1869, is both a source of national pride and international revenue for Egypt.

Authorities said that 20,649 vessels transited the canal in 2018, a 10% increase compared to the 18,849 vessels expected in 2020. In 2021, the canal's annual income hit $6,3 billion, the most in its history.

The pandemic continues to exert strain on the maritime industry, and Russia's war in Ukraine has added to global economic concerns.