Suez Canal Cuts Fees To Lure Back Shipping Lines as Red Sea Security Improves
The Suez Canal Authority announced a 15% reduction in transit fees for large container ships starting Thursday, in a move to attract global shipping traffic back to the key waterway. The temporary measure, which will remain in place for 90 days, applies to vessels with a net tonnage of 130,000 tonnes or more, whether loaded or empty.
The decision comes as security conditions in the Red Sea show signs of improvement following months of disruption caused by Houthi attacks on commercial vessels. The violence had forced many shipping companies to reroute via the Cape of Good Hope, significantly reducing traffic through the canal.
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Suez Canal Authority Chairman Osama Rabie said the discount is meant to accommodate the needs of shipowners and reaffirm the canal’s role as a cornerstone of global maritime trade. “We are working to keep pace with the rapid changes in the maritime transport industry and to respond flexibly to current challenges in the Red Sea region,” he said in a statement.
Roughly 12% of global trade passes through the Suez Canal, which is also a critical source of revenue for Egypt. The disruptions have taken a steep toll. Rabie said in April that the canal’s revenues had dropped by 61% in 2024, falling to $3.99 billion compared to $10.25 billion in 2023.
The new discount is aimed at reversing that trend and restoring the canal’s strategic and economic significance.
