On May 13th, the Suez Canal Authority (SCA) announced a 15% transit fee discount for container ships with a net tonnage of 130,000 tons or more. This discount will be automatically applied during the vessel’s transit, without the need for prior application or documentation. The measure, which covers both laden and ballast container ships transiting in both directions, will take effect on May 15th and remain in place for 90 days.
The Suez Canal’s revenue has taken a significant hit amid ongoing tensions in the Red Sea and widespread rerouting of vessels. Income dropped from $2.4 billion in Q4 2023 to $880.9 million in the same period in 2024. The SCA has been in talks with major shipping lines to encourage a return to the Suez Canal route, but concerns over security persist, leading many vessels to continue avoiding the canal.
However, recent developments could change the outlook. On May 6th (Eastern Time), U.S. President Donald Trump announced a ceasefire agreement with the Houthi forces, aimed at ensuring safe navigation and commercial transit in the Red Sea and Bab-el-Mandeb Strait. Under the deal, both the U.S. and Houthi forces have pledged not to target each other’s vessels, potentially restoring confidence in the region’s shipping routes.
While this news is promising, shipping giants remain cautious. Many have stated that any return to the Suez Canal and Red Sea routes must be based on a sustained period of safety, as clients are unwilling to face route disruptions again. Industry experts predict that a full recovery in shipping confidence may not materialize until the second half of 2025.
Stay tuned for further updates as the SCA continues its efforts to restore its status as a premier shipping route.
