Suez Canal Plans 12-15% Transit Fee Discounts Amid Revenue Decline

Egypt's Suez Canal Authority, led by Osama Rabie, is considering offering transit fee discounts of 12% to 15% to counter a sharp decline in shipping traffic caused by attacks from Yemen's Houthis, who aim to disrupt shipments to Israel in solidarity with Palestinians in Gaza. The canal's revenue has plunged significantly, from $2.40 billion to $880.9 million in one year, due to these security challenges, leading to increased insurance costs and rerouting of vessels away from the canal. Recent meetings between the Suez Canal Authority and major shipping lines discussed the positive impact of a Yemen ceasefire on Red Sea security and explored incentives to encourage ships to return to the canal route. Meanwhile, Egyptian economic experts warn that U.S. tariffs on imports could further harm the canal's traffic and revenues, compounding the effects of regional conflicts and threatening Egypt's economy. The Suez Canal remains a crucial global trade artery, handling 12-15% of world trade, but ongoing geopolitical tensions and trade disruptions pose significant risks to its recovery and stability. Authorities emphasize collaborative efforts and regional security improvements to restore confidence and support global supply chains.