World News | Egypt to raise Suez Canal transit fees in 2023

CAIRO, Sept. 17 (AP) Egypt said Saturday it will raise transit fees for ships passing through one of the world’s most important waterways, the Suez Canal, including for tankers carrying oil.

The Suez Canal Authority said in a statement Saturday that it would increase charges by 15 percent for tankers carrying oil and petroleum products and 10 percent for dry bulk carriers and cruise ships.

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The head of the authority, Osama Rabie, said the rate hike, which will take effect on January 1, was “inevitable and necessary”. He blamed high global inflation, which has increased the cost of waterway operations, maintenance and maritime services.

About 10% of global trade, including 7% of the world’s oil, flows through the Suez Canal, the main source of foreign exchange for Egypt, the most populous Arab country with a population of more than 103 million.

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Egypt faces enormous economic challenges and lacks the foreign exchange it needs to buy necessities such as food and fuel.

Authorities said 20,649 ships passed through the canal last year, up 10 percent from 18,830 in 2020. Annual revenue for the canal will hit an all-time high of $6.3 billion in 2021.

Canal authorities have been working to widen and deepen the southern part of the waterway since a massive ship ran aground and closed the canal in March 2021. The six-day lockdown disrupted global shipping.

On August 31, a tanker ran aground and briefly blocked the channel before advancing. (Associated Press)

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