Suez Canal Authority Announces 15% Discount on Container Ship Transit Fees Amid Security Concerns

Watan-The Suez Canal Authority has approved a 15% reduction in transit fees for container ships carrying 130,000 tons or more, for a period of 90 days starting from next Thursday. This move comes in response to requests from container ship owners and operators to encourage major shipping lines to resume passing through the Suez Canal amid the security disruptions in the Red Sea.

Suez Canal Authority Chairman, Lieutenant General Ahmed Rabea, stated in television comments that the fee reductions were implemented due to several shipping companies changing their routes to the Cape of Good Hope, leading to a decline in canal revenues from $8.8 billion to $6.6 billion by the end of the last financial year.

Rabea explained that while there was a slight improvement in shipping activity in March, it dropped again in April due to continued Houthi attacks, which had previously prompted the canal authority to implement fee reductions throughout the previous year. He added that tensions in the Red Sea continue to impact canal traffic, even though the intensity of attacks has decreased in recent weeks.

Red Sea Tensions Continue to Impact Suez Canal Traffic Amid Calls for Incentives

The last attack on vessels by the Houthis was recorded on December 2, and since then, no new attacks have been reported. He noted that the U.S. had announced an end to its fighting with the Houthis and that the group itself had confirmed it would cease targeting both American and non-American ships in the Red Sea.

Rabea also emphasized that a truce in Gaza would be a pivotal step toward stabilizing the Red Sea situation and restoring normal shipping operations, adding that Suez Canal clients are awaiting incentives to encourage ships to return to the canal. The authority is working to provide incentives to compensate for the losses incurred by ships rerouting to the Cape of Good Hope in recent months.

Rabea further discussed the development of the southern sector of the canal, a project prompted by the challenges revealed during the Ever Given ship grounding crisis. He stressed that the rocky and granite nature of this section of the canal makes dredging work difficult, particularly since no dredging had been done there since 1990. This explains the long completion period compared to the original construction of the canal, but he reassured that this will not affect navigation, as the project was completed over three years.

In response to U.S. President Donald Trump’s comments about requesting free passage for U.S. ships through the canal, Rabea confirmed that no country is granted special privileges under the law and the agreement. Any reduction in Suez Canal transit fees as incentives to boost revenues applies to all ships worldwide, not just the United States.

He further stated that no ships are exempt from transit fees through the Suez Canal, and no ships pass through the canal for free, even Egyptian vessels.

Rabea noted that U.S. ships continue to transit the canal as usual, following the standard fees and procedures applied to all vessels.

This decision to reduce transit fees comes after a meeting between Egyptian President Abdel Fattah el-Sisi, Suez Canal Authority Chairman, and Mustafa El-Dagheshi, Chairman of the Red Sea Shipyard Company. According to a spokesperson for the Egyptian presidency, el-Sisi reviewed the developments in the Suez Canal’s navigation and the efforts being made to maintain high levels of maritime and navigational services despite current international and regional challenges.

These include adding new maritime services and completing ongoing projects to develop the canal’s navigational course. The spokesperson mentioned the completion of the southern sector development project, which began full operations in February 2025, as well as the new Ismailia Water Station, with a capacity of 180,000 cubic meters.

U.S. Ships Continue Normal Passage Through Suez Canal Amid Fee Reductions

Rabea also met last week with representatives from shipping agencies, who called for temporary incentives to help offset increased insurance costs for ships crossing the high-risk Red Sea.

Earlier, el-Sisi had announced that Egypt lost between 50-60% of its revenue, or over $6 billion, due to regional tensions last year.

According to data from the Central Bank of Egypt earlier this month, Suez Canal revenues, a major source of foreign currency for Egypt, dropped to $880.9 million in the fourth quarter of last year, down from $2.4 billion in the previous year, due to the Houthi attacks.