$750 million expected revenue from the increase in transit fees from the Suez Canal

Quoting Lieutenant-General Osama Rabie, head of the Suez Canal Authority: It is expected to achieve a return estimated at 700-750 million dollars during the next year, with the implementation of the transit fee increases starting from January 2023 The authority issued decisions regarding an increase in transit fees for all types of ships transiting the canal by 15% during the year 2023, while the transit fees for both dry bulk vessels and cruise ships will increase by 10%, provided that the implementation of the planned increase will start from January early next year.And Lieutenant-General Osama Rabea made it clear that the revenues of the Suez Canal are expected to reach about 7.5 billion dollars during the next year.On the reasons for the authority’s tendency to raise fees, the team stated that this is the result of many factors, including the current global inflation rates of more than 8%, which leads to an increase in operating and maintenance costs and the provision of navigational services in the canal, especially since about 30 locomotives and similar launchers are used daily. Guidance, as well as accompanying between 6-8 pilots for each ship whose tonnage exceeds 70 tons, and added that this is expected to cause an increase in operating costs by 12%, noting that this is in addition to the rise in crude oil prices above the level of 90 dollars per barrel, and an average rise in LNG prices, as well as significant increases in shipping methods.The General stressed that the decision to increase the fees for crossing the canal was made, based on an extensive study, due to many reasons and data, noting that the authority also has flexible policies through which it can be reconsidered and set reductions in the event that certain lines or ships are affected. He pointed out that according to the extensive study, it was decided that the increase in fees would be the transit of dry bulk vessels for transporting wheat, coal and iron filings, as well as cruise ships by 10%, especially in light of the impact of the slowdown in real estate movement in China and the impact of the Russian-Ukrainian war on the demand for those goods. As well as the insufficient recovery of tourism.