Egypt announced on Monday that it will increase transit fees for all types of vessels passing through the Suez Canal, a move that might further amplify global inflation concerns.
According to a statement released by the Suez Canal Authority, transit fees for crude oil tankers, LPG carriers, LNG carriers, Chemical tankers, and other liquid bulk tankers passing through the canal will rise by 15%, effective Jan. 15, 2024. The increase for dry bulk vessels, cargo ships, roll-on/roll-off vessels, and other vessels will be 5%.
SCA said container ships coming from ports in “North-West Europe” and heading directly to ports in the “Far East” are exempt from price hikes in transit fees.
Here’s the announcement from SCA:
While this won’t have a massive impact on trade flows, increased transit fees for carriers sailing through the canal will most likely be passed on to consumers, fueling even more inflation.
Despite the price hike, the canal is still the cheapest route for carriers. As of 2021, data from Statista shows 20,600 vessels transited the canal in 2021.