Suez Canal Increases Passage Fees

The Suez Canal announced on Wednesday that it will raise ship passage fees by six percent starting from February. The head of the authority, Osama Rabie, stated in a phone interview with the Egyptian TV channel "Sada El Balad" that "this increase will apply to all ships except for two types." He clarified that "no increase will be imposed on cruise ships, as this sector has suffered and continues to suffer due to the COVID-19 pandemic." Additionally, he noted that the decision will not apply to the passage of liquefied natural gas ships, "as we have already raised their fees by ten percent at the beginning of this month." Rabie indicated that this increase is the first in seven years and comes at a time of significant activity in the maritime transport sector, adding that this increase is expected to generate "between 400 to 500 million dollars annually" for the authority. He explained that the decision followed a review of "periodic reports and recommendations from international organizations such as the International Monetary Fund, which indicated a six percent growth in the global economy and a continued increase in global trade movement and a seven percent rise in demand for maritime transport, in addition to our own market studies and the flow through the Suez Canal." He added, "After shipping and goods prices have risen, we had to take our share, as we want to provide excellent service and develop the authority and acquire new units."