The Suez Canal Authority will slash transit fees for car carriers travelling between Northern Europe and Southeast Asia by 5% starting 1 July as it looks to boost traffic through the critical shipping route, the authority announced yesterday. The breaks will run through December.

Container ships and bulk carriers travelling between West Africa and the Far East will get a 75% break as of next month until the end of the year, the SCA said in a separate announcement.

The SCA has also extended lower costs for tankers: The SCA also decided on Tuesday to extend price breaks on container ships and bulk carriers travelling between the Americas and Southeast Asia to average 15-75% until the end of this year.

This follows cuts offered at the end of last year, which provided LNG, oil and LPG carriers up to 75% off transit fees

Why is the SCA targeting more shipping traffic through the canal, you ask? Suez Canal revenues are an important source of hard currency for Egypt, bringing in more than USD 550 mn in April — the highest month on record.