SCA announced discounts for this type of container ships in operation
On May 13th, the Suez Canal Authority (SCA) announced that it would offer a 15% discount on transit tolls for container ships with a net tonnage of 130,000 tons or more passing through the Suez Canal. This discount will be automatically obtained upon the vessel's transit without the need for prior application or document provision.
Due to the continuous tension in the Red Sea and the large number of ships changing their routes, the revenue of the Suez Canal has dropped significantly, from 2.4 billion US dollars in the fourth quarter of 2023 to 880.9 million US dollars in the same period of 2024.
Against this backdrop, the Suez Canal Authority has been in discussions with international liner companies to encourage them to fully resume the passage of ships through the Suez Canal. However, liner companies are more concerned about safety issues, and a large number of ships still detour.
But recently, there have been new changes in the situation in the Red Sea region.
On May 6th, Eastern Time of the United States, US President Trump announced that the United States had reached a ceasefire agreement with the Houthi armed forces. It is reported that neither the United States nor the Houthi forces will target each other in the Red Sea and the Bab el-Mandeb Strait, including US vessels, to ensure freedom of navigation and smooth commercial transportation.
This means that the navigation conditions in the Red Sea and the Suez Canal have improved, and liner companies may consider redeploying vessels. The Suez Canal Authority has reduced tolls at this time, also to further attract liner companies to return to the Suez Canal.
Some shipping giants have clearly stated that in their interactions with clients, they are all eager to resume the Suez Canal and Red Sea routes as soon as possible. However, they have a prerequisite: they do not want the routes to change repeatedly. This means that the chance to return to the Suez Canal and Red Sea routes is only once, and absolute safety must be guaranteed.
As for the timetable for "absolute safety", the industry is very cautious. It is generally expected that the industry will remain in a wait-and-see stage in the first half of 2025, and the earliest it will be until the second half of the year.
Due to the continuous tension in the Red Sea and the large number of ships changing their routes, the revenue of the Suez Canal has dropped significantly, from 2.4 billion US dollars in the fourth quarter of 2023 to 880.9 million US dollars in the same period of 2024.
Against this backdrop, the Suez Canal Authority has been in discussions with international liner companies to encourage them to fully resume the passage of ships through the Suez Canal. However, liner companies are more concerned about safety issues, and a large number of ships still detour.
But recently, there have been new changes in the situation in the Red Sea region.
On May 6th, Eastern Time of the United States, US President Trump announced that the United States had reached a ceasefire agreement with the Houthi armed forces. It is reported that neither the United States nor the Houthi forces will target each other in the Red Sea and the Bab el-Mandeb Strait, including US vessels, to ensure freedom of navigation and smooth commercial transportation.
This means that the navigation conditions in the Red Sea and the Suez Canal have improved, and liner companies may consider redeploying vessels. The Suez Canal Authority has reduced tolls at this time, also to further attract liner companies to return to the Suez Canal.
Some shipping giants have clearly stated that in their interactions with clients, they are all eager to resume the Suez Canal and Red Sea routes as soon as possible. However, they have a prerequisite: they do not want the routes to change repeatedly. This means that the chance to return to the Suez Canal and Red Sea routes is only once, and absolute safety must be guaranteed.
As for the timetable for "absolute safety", the industry is very cautious. It is generally expected that the industry will remain in a wait-and-see stage in the first half of 2025, and the earliest it will be until the second half of the year.
