According to the Middle East Monitor, the Egyptian Government announced that from the 1st of October, transit rates for container vessels will be reduced from between 3 to 5 percent in the northern and southern Suez ports.
It is also reported that larger reductions will be awarded to vessels that carry more containers.
Mohan Mamish, Chairman of the Suez Canal Authority (SCA) and President of the economic district of the Suez Canal said, “reducing prices will not affect the quality of shipping services provided to vessels.”
The move has been put in place to attract more shipping traffic to the area and tout the Suez Canal as a safe and fast route for secure trade exchange between the West and the East. The waterway is able to handle the world’s largest containerships as compared to the 14,ooo TEUs capacity of the Panama Canal.
Prior to this, in July, a discount of upto 45 percent was offered to large oil tankers en route from the United States to the Gulf.
In the period from January to July of 2017, the revenues of the Suez Canal increased by USD 2.7 billion as compared to the same period in 2016. However, in 2016, due to the slow global trade growth, the revenues were down to USD 5 billion (3.2 percent) from 2015.