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Suez Canal Authority Offers 15% Discount to Revive Maritime Traffic

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Suez Canal Authority Offers 15% Discount to Revive Maritime Traffic

CategoryDetails
EventSuez Canal Authority (SCA) announces a 15% discount on transit fees for large cargo vessels.
Effective DateMay 15, 2025
PurposeRevive maritime traffic and revenues impacted by the Red Sea security crisis.
ContextCeasefire agreement between the United States and Iran-backed Houthi militia.
Discount CriteriaApplicable to cargo ships of 130,000 metric tonnes or more for 90 days.
AnnouncementMade 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 Dependency80% of European exports rely on the Suez Canal.
Post-Diversion ImpactShipping costs surged by 180%, freight rates rose, and voyage durations extended by 10-14 days.
Traffic VolumeSuez Canal's TTV dropped to 484,137 mt on May 11, 2025 (from 1.35 million mt in 2024).
Cape of Good HopeDaily transit increased, with TTV at 4.38 million mt.
Industry ResponseShipping majors like Maersk continue to prefer longer route due to war-risk premiums.
Revenue DeclineSuez Canal's revenue fell from $10.3 billion in 2023 to $4 billion in 2024.

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