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Wednesday, 7 December 2016

Suez Canal to amend transit fees following OPEC decision

OPEC’s agreement to cap production is already having an effect on Suez Canal tolls, with the Suez Canal Authority (SCA) set to hand down new transit fees once oil prices have stabilized, said SCA chief Mohab Mamish. As we noted yesterday, there is already talk about how the agreement is looking good for Suez Canal revenues as the price of traveling around the Cape of Good Hope rises. Furthermore, the Suez Canal has had to slash transit fees throughout the year as cheaper fuel prices made the route less desirable. On a related note, shipping lines are still in talks with SCA on paying transit fees in advance in exchange for discounts; the lines are pushing for a 6% discount, Al Mal cites Mamish as having said. The authority is offering a 3% for the prepayment of three years’ transit fees and a 5% discount for a five-year prepayment, the highest rate authorized by the CBE. A decision from the three majors — Maersk, MCS, and CMA — was expected last month.

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