Egypt to raise Suez Canal transit fees for ships in 2023

Egypt's Suez Canal Authority  said that it will increase transit fees for vessels, including oil-laden tankers, passing through Suez Canal, one of the world's most crucial waterways. The Suez Canal Authority said in a statement on September 17th that it will add 15% to the fees for tankers carrying oil and petroleum products, and 10% for dry bulk carriers and cruise ships.

The authority's chief, Osama Rabie, said the hikes, which will take effect on Jan. 1, are inevitable and a necessity. He blamed booming global inflation rates, which have increased the cost of the waterway's operations, maintenance, and maritime services.  He said the SCA adjusted the tolls through clear mechanisms incorporating the changes in the maritime transport market, noting the Suez canal remains the most efficient and least costly route compared to alternative routes.

Quick Facts:  About 10% of global trade, including 7% of the world's oil, flows through the Suez Canal, a major source of foreign currency to Egypt, the most Arab populous country with over 103 million people. 

Authorities said 20,694 vessels passed through the canal in 2021, a 10% increase compared to 18,830 vessels in 2020.  In 2021, some 1.27 billion tons of cargo were shipped through the canal, earning $6.3 billion dollars (5.5 billion euros) in transit fees, 13 percent more than the previous year.

Suez Canal achieved its highest annual revenue in its history during the fiscal year 2021/2022 at $7 billion, compared to $5.8 billion in 2020/2021, marking an increase of 20.7 percent.

Egypt has faced towering economic challenges and is running low on foreign currency needed to buy essentials such as grain and fuel.

The Suez Canal Authority have been working to widen and deepen the waterway's southern part, since Evergreen Marine’s giant container ship Ever Given ran aground and closed off the canal in March 2021. The six-day blockage disrupted global shipment.

An oil tanker had ran aground on 31st August 2021, briefly blocking the waterway before it was freed.