On Saturday, Egypt announced it would increase transit fees by 2023 for all types of ships passing through the Suez Canal.
According to one statement released by the Suez Canal Authority, shipping fees for tankers passing through the canal will increase by 15%. The increase for bulk carriers and cruise ships is 10%. The fee increase will take effect on January 1, 2023.
“The increase is inevitable and essential in light of the current global inflation rate,” the agency’s head, Osama Rabiee, said in the statement.
He added that the decision was based on the impact of rising energy prices.
A ship sails on the Suez Canal in Ismailia, Egypt, on May 17, 2022. An analyst told CNBC that while the increase in Suez fees won’t have a major impact on trade flows, it will boost trade flows. push inflation continuously.
Sui Xiankai | Xinhua News Agency | beautiful pictures
“[The rise in crude oil profits] has resulted in an increase in the average price of bunkers and, therefore, an increase in the savings achieved by transiting through the Suez Canal compared to other alternative routes,” Rabiee said in the statement.
End 20,600 ships have passed through the Suez Canal by 2021according to database company Statista.
One analyst told CNBC that while the Suez fee increase won’t have a “major impact” on trade flows, it will boost ongoing inflation.
President of Mandarin Shipping, Tim Huxley, said: “Oil prices are currently falling and so if the price of the canal goes against the competition (which is happening around Africa) the Canal Authority will lose. call,” said Mandarin Shipping President Tim Huxley.
Global oil prices have had a tumultuous year – from soaring to over $130 per barrel after the Russian-Ukrainian war broke out, fell to around $80-$90 per barrel in recent weeks.
The Panamanian flag ship Ever Given departed for the city of Ismailia, northeastern Egypt to depart from the Suez Canal and continue on to the Dutch city of Rotterdam, on 7 July 2021. announced Saturday that transit fees for all types of vessels passing through the Suez Canal will be increased by 2023.
Anadolu Agency | Anadolu Agency | beautiful pictures
Huxley added that the increased fees would be passed on to customers, which in turn would cause inflation.
The United States reported a Up 8.3% over the same period last year in consumer prices in August. Rising food and accommodation costs have offset the drop in gas prices.
Another analyst said that despite the increase in fees, the Suez Canal is still a significantly cheaper route for ships.
A ship on the Suez Canal in Ismailia, Egypt, on January 3, 2022. “The savings on sailing through the Suez Canal are still huge, especially given the very high prices of … bunkers today” , an analyst said.
Ahmed Gomaa | Xinhua News Agency | beautiful pictures
“The savings of sailing through the Suez Canal are still huge, especially due to … very high oil and bunker prices. In addition, the shipping market is generally in high demand and vessel availability. This also encourages ship owners to send ships. via the fastest routes,” Niels Rasmussen, head of shipping analysis at shipping association Bimco, said.
Rasmussen says he doesn’t expect shipowners to switch to alternative routes, such as sailing south to Africa.
Mr. Rasmussen said: “The shipping markets are generally in high demand and with low vessel availability. This also incentivizes ship owners to send ships through the fastest routes.”