Egypt’s Suez Canal offers 15% discount for big container ships to win back trade

Egypt’s Suez Canal will offer a 15 per cent discount on transit fees for container ships with net tonnage of at least 130,000 metric tonnes, to encourage trade back now the security situation has eased and help ships offset rising insurance costs, its authorities said today according to Reuters.

The discounts will be applied for 90 days from Thursday on container ships that meet the standards, whether full or empty, Suez Canal Authority said in a statement.

Revenue from the Suez Canal, a key source of foreign currency for Egypt, plunged to $880.9 million in the fourth quarter of last year from $2.4 billion a year earlier, following attacks on Israel-linked ships by Yemen’s Houthis in the Red Sea and Bab Al-Mandab Strait. The Iran-backed Houthis say they are trying to shut off cargo bound for Israel in support of Palestinians in Gaza.

Last week, Suez Canal Authority chief Osama Rabie met with representatives from shipping agencies who called for temporary incentives that would help offset increased insurance costs for vessels operating in the Red Sea, which they deemed a high-risk zone.

The meeting followed an Oman-mediated ceasefire between the United States and the Houthis, under which the US agreed to stop bombing Yemen in return for the group agreeing to stop attacking US ships. The accord with the Houthis does not include Israel.