· The Suez Canal has become a key part of the trade route as an artificial waterway that connects the Mediterranean Sea and the Red Sea. This allows for a faster transit that avoids the South Atlantic and southern Indian oceans. It has been estimated that on average 40-50 ships utilize this canal daily and with the expansion project currently underway will increase capacity to 97 ships a day once completed in July 2023.
· The Suez Canal Authority (SCA) has announced they will increase tolls charged for transit in this waterway. Fees charged to vessels will be increased by 15% during the next year and dry bulk ships and cruise ships will increase by 10% starting January 2023.
· The SCA indicated this rate increase is impart caused by the increasing energy costs and is reflective of the market with inflation at 8% globally. Ossama Rabiee the SCA’s chairman also indicated with rising price of crude oil and liquid natural gas, vessels save money by utilizing the canal currently by lessening their overall costs.
Monday September 26. 2022
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