The Suez Canal Authority has increased the transit fees for all ships using the canal by 6 percent in 2022 compared to 2021 starting February. This announcement was made by Osama Rabea – the Chairman of the Suez Canal Authority.
Mr. Osama further indicated that the LNG and Cruise ships will be excluded from the increase leaving the rates as they were in 2021. The authority stated that they use a model policy in estimating the tolls of the transit vessels in order to provide navigational services as they transit through the canal.
Osama Rabea also said that the decision was a response to the most recent variables of the LNG seaborne trade. The cruise ships were excluded from the increase in transit fees because they were the most affected by Covid-19 pandemic when compared to the rest of the vessels.
The Suez Canal faced a lot of challenges in the recent past. Despite of those challenges their revenues swelled because they collected $5.2 billion between January and October 2021 compared to $4.6 billion during the same period in 2020. That is a 12.4 percent increase equivalent to $575.1 million.
The Suez Canal is one of the largest source of foreign currency for Egypt considering that it generates $5.84 billion per year. The canal plays a crucial role in global trade. It is estimated that 10 percent of total global trade passes through the Suez Canal. It handles 25 percent of containerized goods trade and 100 percent of seaborne trade between Asia and Europe.
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