Suez Canal Authority raises transit tolls again for 2023
The Suez Canal Authority (SCA) has once again announced that it will increase transit tolls for vessels passing through the Suez Canal, effective January 2023.
In a statement released over the weekend, the SCA said transit fees would increase by 15% for all vessel types except bulk carriers and cruise ships, which would see a 10% increase.
In justifying the fee hike, Osama Rabie, President and CEO of SCA, said the channel’s flexible pricing strategy is driven by real-time changes in the global economy.
“The increase in transit tolls comes in light of SCA keeping abreast of all changes in the shipping market which monitor the ever-increasing daily charter rates for most types of vessels which have reached unprecedented levels, and forecasts for next year show a continuation in this ascent,” Rabbie said.
Rabie said the determination of the Suez Canal transit toll is based on a number of factors, the most important of which is the average freight rate for various types of vessels. There has been a huge increase in transit charges for container ships over the past year as their freight rates skyrocketed at the height of the Covid-19 pandemic.
Rabie added that rising energy prices and global inflation rates are impacting the equation for calculating tolls. These factors have increased the operating costs and the costs of the navigation services provided by the canal.
SCA expects its annual revenue to increase by $700 million after new transit fees come into effect next year.
In July, SCA posted a record profit of $7 billion for fiscal year 2021-22 (July 2021-June 2022), driven by a series of transit fare hikes during the period.
Since the start of this year, SCA has increased the transit surcharge twice – once in February and again in March – citing growth in global trade.