A statement by the Suez Canal Authority (SCA) announced that transit fees for all kinds of vessels will increase in 2023. A jump by 15% will come into force as of January 1st, 2023. The Canal’s Authority Chairman and Managing Director, Osama Rabiee, in his statement declared that the rise happens in line with inflation rates throughout the world. He further said that the jump in Suez Canal fee rates is affected by several reasons, one is the average shipping rates on all vessels. Last year, for instance, the transportation fees of ships increased due to Covid-19.
The SCA gained almost $7 billion, all-time record, in the last fiscal year and it is expected that its annual income will rise by $700 million in 2023, said Rabiee.
The increase will not considerably affect flow of imports and exports but it will intensify current global inflation, said an analyst.
Although the fares will increase, the Suez Canal will, to a great extent, remain a cheaper course for all vessels, according to another analyst.
With present drop in oil prices, if the canal charges too high prices, SCA will be a loser, said Tim Huxley, chairman of Hong Kong's Mandarin Shipping.
Oil prices in the world have seen fluctuations this year: the prices climbed to $130 per barrel subsequent to the Russian invasion and reached to about $80-$90 per barrel over the last weeks. The jump in fares will affect customers, escalating inflation in turn, Huxley also said.
Since the beginning of 2022, the SCA has already increased its fees twice due to the growth in global trade: one in February and another in March.