Suez Canal Offers 15% Transit Fee Discount for Large Container Ships to Boost Trade Amid Security Easing

Egypt’s Suez Canal will offer a 15% discount on transit fees for container ships with a net tonnage of over 130,000, aiming to encourage trade as the security situation improves and to help vessels cope with rising insurance premiums, the authority announced on Tuesday.

According to a statement from the Suez Canal Authority (SCA), the discount will apply to eligible container vessels—whether fully loaded or empty—starting from May 15 for a period of 90 days.

Revenue from the Suez Canal, one of Egypt’s main sources of foreign currency, dropped significantly in the fourth quarter of last year to $880.9 million, down from $2.4 billion in the same period the previous year. The decline was caused by attacks on shipping in the Red Sea and Bab al-Mandeb Strait by Yemen's Houthi group. The Houthis claimed they were targeting ships headed to Israel in support of Palestinians in Gaza, but they also effectively deterred vessels from using the canal.

Last week, SCA Chairman Osama Rabie met with representatives from shipping agencies who urged temporary incentives to help offset rising insurance costs for ships operating in the Red Sea, which is considered a high-risk area.

The meeting followed a ceasefire brokered by Oman between the U.S. and the Houthis. Under the agreement, the U.S. agreed to halt strikes on Houthi positions in Yemen in exchange for the group stopping attacks on U.S. vessels. The agreement does not include Israel.