Insolvent Egypt hikes transit fees by up to 10%, on Tuesday, for ships passing through one of the world’s most important waterways, the Suez Canal. Around 10% of global trade, including 7% of the world’s oil, travels through the Suez Canal, linking the Mediterranean and Red seas.
According to the information published by the Suez Canal on their website, the increases were per the development in global trade. In addition, they cited the canal’s improvement and enhancement of the transit service.
As indicated by the declaration, the transit fees for chemical tankers, LPG, and other bulk tankers has increased by 10%. Ships conveying natural gas, vehicles, general cargo and multi-purpose vessels will be subjected to a 7% hike, whereas a hike of 5% will be imposed on crude and oil tankers and dry bulk vessels. It also added that the rise could be reconsidered or cancelled later.
In other news Video: The Suez Canal Was Once Blocked for 8 Years
The canal authorities have been operating to broaden the southern part of the waterway, where a hulking ship got stuck and blacked the canal in March 2021. These six days blockage disturbed global shipment. Several ships waited in place for the blockage to clear. As a result, few vessels had to take the long alternate route around Cape of Good Hope at Africa’s southern tip, resulting in additional fuel expenses.
The canal’s annual revenue increased by 10% in 2021as compared to 2020, accounting for $6.3 billion, the highest ever.