In an attempt to revive maritime traffic, Egypt has reduced transit fees by 15 percent for container ships over 130,000 tons using the Suez Canal.
The measure to lower Suez transit fees underscores the canal’s crucial role for the Egyptian economy and international trade.
Announced Thursday, the reduction will be in effect for 90 days. It aims to offset the sharp decline in activity since the Houthi attacks in the Red Sea, which forced many ships to bypass Africa via the Cape of Good Hope.
In April, President Abdel Fattah al-Sisi acknowledged an estimated revenue loss of nearly $7 billion for 2024, representing a 60 percent drop in traffic.
The Canal Authority, headed by Osama Rabie, hopes this initiative will encourage major shipping companies to resume using this strategic route between Europe, Asia, and the Middle East. Although a ceasefire was announced in early May between the Houthis and the United States, security instability remains.
Yemeni rebels maintain their threats against Israeli-linked ships.
In this uncertain climate, shipping giants like Maersk and MSC remain on their guard, demanding increased security guarantees and lower war risk insurance premiums before returning to this route.
SL/te/Sf/fss/as/APA