Is the pay-in-advance offer for global shippers a bid to stock-in USD, or a pre-emptive strike against the Panama Canal? As we’ve noted several times in recent weeks, the Suez Canal Authority is offering major global carriers 3% discounts on transit fees in return for a 3-5 year pre-payment of fees. Local analysts (ourselves included) have largely positioned this in the context of the nation’s FX woes — building the CBE’s war chest today with tomorrow’s revenues. The WSJ suggests it could just as easily be the SCA looking to lock-in market share amid rising competition from the Panama Canal during the current market downturn. Egypt is also benefitting from the resurgence of US oil and gas producers, SCA chief Mohab Mamish notes: “The Suez is counting heavily on increased petroleum-product cargoes such as liquefied natural gas and ethanol from the U.S. to Asia in coming years, as US energy exporters are tapping new markets in Asia. ‘The exports by US refiners to Asia, and especially countries like India, will boost our revenue significantly,’ Mr. Mamish said.” See stories in the Journal here and here.