Egypt’s Suez Canal Authority (SCA) announced a 15% discount on transit fees for container ships with a net tonnage of at least 130,000 metric tons, in a bid to restore trade flows through the waterway and help carriers manage rising insurance premiums, according to Reuters.
The incentive, effective May 15 for a 90-day period, applies to qualifying vessels regardless of whether they are laden or empty, noted the SCA.
Revenue from the canal—an essential source of foreign currency for Egypt—dropped sharply in the fourth quarter of 2024, falling to US$880.9 million from US$2.4 billion a year earlier.
The decline followed a wave of Houthi attacks in the Red Sea and Bab al-Mandab Strait, which forced many carriers to reroute around the Cape of Good Hope.
Although the Iran-aligned Houthi movement claims its campaign targets Israeli-bound cargo in solidarity with Palestinians in Gaza, its actions have impacted global trade and undermined confidence in the canal.
Last week, SCA Chairman Osama Rabie met with shipping agency representatives who urged temporary financial relief to help offset soaring insurance costs amid continued classification of the Red Sea as a high-risk zone.
