Suez Canal Authority Offers 15% Discount to Revive Maritime Traffic
| Category | Details |
|---|---|
| Event | Suez Canal Authority (SCA) announces a 15% discount on transit fees for large cargo vessels. |
| Effective Date | May 15, 2025 |
| Purpose | Revive maritime traffic and revenues impacted by the Red Sea security crisis. |
| Context | Ceasefire agreement between the United States and Iran-backed Houthi militia. |
| Discount Criteria | Applicable to cargo ships of 130,000 metric tonnes or more for 90 days. |
| Announcement | Made by Admiral Ossama Rabiee, Chairman of SCA, after meeting with Italy's Ambassador. |
| Impact on Trade | - 12-15% of global trade <br> - 30% of global container traffic <br> - 8-9% of global energy flows |
| India's Dependency | 80% of European exports rely on the Suez Canal. |
| Post-Diversion Impact | Shipping costs surged by 180%, freight rates rose, and voyage durations extended by 10-14 days. |
| Traffic Volume | Suez Canal's TTV dropped to 484,137 mt on May 11, 2025 (from 1.35 million mt in 2024). |
| Cape of Good Hope | Daily transit increased, with TTV at 4.38 million mt. |
| Industry Response | Shipping majors like Maersk continue to prefer longer route due to war-risk premiums. |
| Revenue Decline | Suez Canal's revenue fell from $10.3 billion in 2023 to $4 billion in 2024. |