The Suez Canal Authority (SCA) will apply a 15% discount on transit fees for 90 days to container ships with a net cargo of 130,000 tons or more, whether loaded or in ballast.

The measure, which takes effect May 15, responds to requests from containership owners and operators who are SCA customers. It aims to encourage major shipping lines to resume using the Suez Canal, especially amid what the authority describes as improved safety conditions in the Red Sea region.

Container ships typically carry between 120,000 and 200,000 tons of cargo.

The discount will apply to vessels transiting the canal in either direction and will be calculated based on standard rates. The rebate will be applied automatically, with no application or documentation required.

Ossama Rabiee, chairman and CEO of the Suez Canal Authority, emphasized the SCA’s commitment to supporting global supply chains and facilitating international trade between East and West. He noted the authority’s focus on fostering strong relationships with its customers and partners in the global maritime community.

Rabiee also highlighted the SCA’s ongoing efforts to adapt to rapid changes in the shipping industry and to meet the challenges in the Red Sea region with flexibility and efficiency.

SCA is adopting a strategy to develop and modernize its system of maritime and logistics services provided to its customers, and is making a considerable effort to open up to establishing partnerships with major international companies in various maritime fields, expressing its desire to explore new horizons of bilateral cooperation with Italian companies in the maritime field.

In early 2024, SCA increased transit rates by 5-15%, given the impact of the Houthi attacks, the increase in oil prices, and to recover investments made to improve services and facilities for its customers.

Instability in the Red Sea led to a reduction of about 50% in traffic on the artificial waterway.

Given its privileged location in the Strait of Gibraltar, the Port of Algeciras has managed to partially circumvent the situation of route diversion by establishing itself as a connection point for organizing the distances covered by the ships, which circumnavigate Africa, passing through the Cape of Good Hope, before recovering their course on their way to Europe or America.