By Pieter Cleppe
In a suprising move, Egypt has decided to raise Suez Canal rates from 1 January 2023 on.
There will be a 15% increase for most vessels and a 10% increase for dry bulk ships and cruise ships.
The government of Egypt expects annual revenues to rise by $700 million, after this rate hike.
🇪🇬 🚢Egypt to raise Suez Canal rates on Jan 1. 2023
▪️ 15% increase for most vessels
▪️ 10% for dry bulk ships and cruise ships,➡️#Egypt expects annual revenues to rise by $700 million after rate hike #shipping #supplychains #Egypt #SuezCanal #inflation pic.twitter.com/cc7pDJjdgg
— Prof. Michael Tanchum (@michaeltanchum) September 18, 2022
The Hill notes that around 10% of global trade, including 7% of the world’s oil, flows through the Suez Canal, which is considered a major source of foreign currency to Egypt, the most Arab populous country with over 103 million people.
Official Osama Rabie comments that the hike are “inevitable and a necessity”, blaming booming global inflation rates, which have increased the cost of the waterway’s operations, maintenance, and maritime services.
#Egypt’s Suez Canal Authority has increased transit fees for all types of ships by 15 percent starting January 2023 in order to deal with the impact of global #inflation, the chairman said in a statement.https://t.co/eS8tETZHhR pic.twitter.com/FW0ZAAsRlh
— Arab News Japan (@ArabNewsjp) September 20, 2022