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Sunday, 18 September 2022

Suez Canal Authority to hike transit fees by 15% next year

Transiting the Suez Canal is getting pricier next year: Fees for most vessels crossing the Suez Canal will rise 15% starting 1 January 2023, Suez Canal Authority (SCA) Chairman Osama Rabie said in a statement Saturday.

The exceptions: The SCA will hike rates for dry bulk ships and cruise ships by 10%, he said.

“Inevitable and necessary”: Rabie said the price hikes come due to increased energy prices, freight rates and daily tanker time-charter rates. “Raising transit tolls is a necessity to face the impact of the current global inflation on the increased cost of navigational services in the canal,” he said.

Suez Canal revenues have reached record highs in recent months: Revenues hit a record USD 7 bn in FY 2021-2022 and hit a monthly all-time high of USD 744.8 mn in July.

We really need the revenue right now: The country is struggling to access hard currency after the fallout from the Ukraine war and volatility in global financial markets triggered significant foreign outflows, leaving us with a widening current account deficit.

The story’s getting coverage in foreign press: Reuters | Associated Press | Xinhua.

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