Suez Canal to Increase Toll in 2020

After an eventful year that saw the Suez Canal blocked by the Ever Given, the Suez Canal Authority has officially announced plans to implement increased passage rates for vessels using the canal in 2022.

The announcement of the increase in fees comes as the canal has been experiencing record traffic numbers.

Rates for vessels transiting the canal will be increased by six percent beginning in February. While the canal has benefitted dramatically from the increase in shipping volumes and the transit of new larger vessels, it has nonetheless also found itself facing increasing competition.

During the infamous blockage, some shipping lines redirected their vessels around Africa to Northern Europe and the rest of the Mediterranean Basin. Russia also promoted its North Sea Route.

Admiral Osama Rabea, Chairman of the Suez Canal Authority, said in considering the rate increases they carefully followed and scrutinized all the variables related to the shipping market, global economic indicators, and global trade movement.

Admiral Osama Rabea, Chairman of the Suez Canal Authority, noted that they will apply a balanced and flexible marketing and pricing strategy going forward.

The Authority will be allowing exemptions for both LNG carriers and cruise ships from the increase in fees.

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The Suez Canal recorded its highest ever daily transits on September 29, 2021. A total of 87 vessels made the passage, totaling 4.8 million net tons of cargo. This came after the canal saw nearly a 9% increase in tonnage from January to September.