Egypt’s Suez Canal Authority is considering a temporary reduction in transit fees, ranging from 12% to 15%, to encourage traffic through the vital trade route. Chairman Osama Rabie announced the proposal during a phone interview with Sada al-Balad TV, adding that the measure could be enacted within days, pending approval from President Abdel Fattah al-Sisi.
The canal has experienced a sharp decline in usage due to ongoing security concerns in the Red Sea, where maritime activity has been disrupted. Certain vessels are being diverted away from the region amid heightened risks, particularly those believed to be en route to Israel.
This shift in shipping patterns has significantly impacted the canal’s earnings. Data released by Egypt’s central bank earlier this month showed that revenue dropped to $880.9 million in the fourth quarter, compared to $2.4 billion during the same period last year. The canal remains a key source of foreign currency for Egypt, making the downturn especially concerning.
Rabie recently met with representatives from shipping companies who requested short-term incentives to help mitigate increased insurance costs for vessels operating in the region, which has been classified as high-risk.
The meeting followed a ceasefire agreement mediated by Oman between the United States and a faction involved in the Red Sea unrest. Under the terms of the accord, the U.S. agreed to suspend airstrikes in exchange for a halt to actions against American ships. The arrangement does not extend to vessels destined for Israel.