Egypt to lift Suez Canal transit charges for ships in 2023

Egypt says it’s going to improve transit charges for vessels, together with oil-laden tankers, passing by way of Suez Canal, one of many world’s most vital waterways

CAIRO — Egypt stated on Saturday that it’s going to improve transit charges for vessels, together with oil-laden tankers, passing by way of Suez Canal, one of many world’s most vital waterways.

The Suez Canal Authority stated in an announcement on Saturday that it’s going to add 15% to the charges for tankers carrying oil and petroleum merchandise, and 10% for dry bulk carriers and cruise ships.

The authority’s chief, Osama Rabie, stated the hikes, which is able to take impact on Jan. 1, are “inevitable and a necessity.” He blamed booming international inflation charges, which have elevated the price of the waterway’s operations, upkeep, and maritime providers.

About 10% of world commerce, together with 7% of the world’s oil, flows by way of the Suez Canal, a significant supply of international forex to Egypt, essentially the most Arab populous nation with over 103 million individuals.

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Egypt has confronted towering financial challenges and is working low on international forex wanted to purchase necessities equivalent to grain and gas.

Authorities stated 20,649 vessels handed by way of the canal final yr, a ten% improve in comparison with 18,830 vessels in 2020. The annual revenues of the canal reached $6.3 billion in 2021, the best in its historical past.

Canal authorities have been working to widen and deepen the waterway’s southern half, since a hulking vessel ran aground and closed off the canal in March 2021. The six-day blockage disrupted international cargo.

In August 31, an oil tanker ran aground and briefly blocked the waterway earlier than it was feed.