The Suez Canal Authority has responded to a reported request by US President Donald Trump to allow American vessels to pass through the canal free of charge, stating that no ship is exempt from paying transit fees — not even Egyptian vessels.
In an interview with Egypt’s Al-Hadath Al-Youm TV channel yesterday, Chairman of the Suez Canal Authority, Osama Rabie, stated: “I have not received any official request of this nature, and we do not exempt any ship from fees.” He emphasised that the Constantinople Convention prohibits discrimination among vessels, ensuring all ships, including Egyptian ones, are subject to the standard transit charges.
“There are no exemptions,” Rabie said. “Even Egyptian ships pay the fees because they receive a service, and nearly half of the canal’s revenue is spent on upgrading the waterway and providing navigation services.”
Commenting on potential competition from other global trade routes, Rabie said: “Everyone acts in their own interest, and we do the same.”
He also announced that new discounts of 15 per cent on transit fees would come into effect tomorrow. The reductions will apply to container ships over 130,000 tonnes — ships which currently avoid the canal and take the longer route around the Cape of Good Hope.
Rabie said the timing was chosen due to the relative calm in the Red Sea. He pointed out that there have been no attacks on ships since December, and there is currently an understanding between the Houthis and the United States not to target vessels in the Red Sea.
He added that the Cape of Good Hope route imposes greater financial, security and logistical burdens on ships, unlike the Suez Canal, which offers a shorter and more cost-effective option. The new incentives aim to make the canal even more attractive through further fee reductions.
Rabie concluded, “Ships will eventually return to the canal. The goal now is to encourage them to make that decision sooner.”
He revealed that current daily traffic through the canal stands at 35 to 40 ships, compared to 75 to 80 before the current crisis. He also noted that US dollar revenue has dropped by as much as 62 per cent.
READ: Egypt’s Suez Canal offers 15% discount for big container ships to win back trade