Suez Canal to increase toll rates
The Suez Canal Authority has issued new resolutions on the Suez Canal transit tolls that are to be applied in 2023, according to the company's release. Adm. Ossama Rabiee, SCA's Chairman and Managing Director, has announced an increasing the transit tolls for all types of vessels by 15% during 2023 while that increase is at 10% for dry bulk ships and cruise ships as of the beginning of January of next year.
This systems works with navigational circulars issued and updated by the SCA according to real-time changes for all the categories of transiting vessels which allows for amending the transit tolls effectively in the event of changes the global navigation market witnesses. This eventually allows for providing navigational services for transiting vessels that are in line with the SCA's standards policy to ensure the Canal's position at the forefront as the world's optimal, fastest and shortest route for all clients.
H.E. added that determining the Suez Canal transit tolls rests on a number of pillars; most significant of which is the average freight rates for various types of vessels. In this regard, there were considerable and consecutive increases within the past period; especially in containerships' freight rates, compared to those recorded before the COVID-19 pandemic which will be reflected in the high operational profits that will be achieved by navigational lines throughout 2023 in light of the continued impact of the disturbances in global supply chains and the congestion in ports world-wide, as well as the fact that shipping lines have secured long-term shipping contracts at very high rates.
H.E. has also stated that the increase is inevitable and a necessity in light of the current global inflation rates that reached more than 8% which translates into increased operational costs and the costs of the navigational services provided in the Canal.
The SCA does so through publishing a number of navigational circulars that allow for amending the pricing policies in case of any changes in the navigation market by means of offering incentives to vessels that operate on routes where the Suez Canal wouldn't normally achieve considerable savings. These rebates may reach 75% of the Canal standard transit tolls for a specific period as per what the market dictates. That is in addition to rebates granted through the SCA's long haul committee that study each applying vessel's journey one at a time which may reach 74% of the Canal standard transit tolls according to the conditions of the navigation market at the time the client applies for the rebate, and this also applies to vessels that operate on routes where the Suez Canal wouldn't normally achieve considerable savings.
