Egypt’s Suez Canal Authority Offers Discounts to Attract Shipping Firms
The Suez Canal Authority (SCA) in Egypt has introduced a new plan to incentivize more vessels to use the canal amidst security concerns in the Red Sea region, which have prompted many ships to opt for alternative routes such as the Cape of Good Hope.
The Chairman of the SCA, Admiral Osama Rabie, has announced that the authority is considering offering discounts of up to 15% on transit fees to shipping companies. This initiative comes in response to a noticeable decline in maritime traffic, attributed to the ongoing instability in the Red Sea area.
Rabie highlighted that vessel crossings in April 2025 were significantly lower compared to previous months, with many shipping firms exercising caution due to security threats in the region. The SCA is contemplating temporary reductions in transit fees ranging from 12% to 15% in an effort to restore normal traffic levels by the end of the year.
In an interview with Egyptian news channel Sada El-Balad, Rabie underscored that the proposed discounts are part of a broader strategy to enhance the competitiveness of the canal, particularly in relation to alternative routes like the Cape of Good Hope.
Although there was a slight improvement in canal traffic in March compared to February, Rabie admitted that overall shipping activity had not yet returned to pre-crisis levels. He has been engaged in discussions with various shipping lines and companies to encourage them to resume using the canal, but concerns linger due to the ongoing Houthi attacks on vessels and the absence of a ceasefire in Gaza.
Since November 2023, the Houthis have been targeting ships passing through the Red Sea, the Bab Al-Mandab Strait, and the Gulf of Aden in solidarity with Palestinians in Gaza. The continued Israeli bombardment on Gaza, resulting in the deaths of over 52,800 people since October 7, 2023, has further exacerbated the situation, with a majority of the casualties being women and children.
While the Houthis had initially halted attacks following a ceasefire agreement in Gaza in January, they resumed hostilities in March after Israel resumed airstrikes on Gaza, violating the agreed ceasefire period.
