Suez Canal to lure back container ships

The Suez Canal Authority (SCA) said in a circular, in response to requests from containership owners and operators, and in light of recent positive developments in the security situation in the Red Sea and Bab al-Mandab Strait it would be offering rebate on tolls for large boxships.

A rebate of 15% on tolls will apply to container ships of 130,000 net tonnage or above transiting the canal either laden or in ballast conditions and will be applied directly on transit without need to submit additional documentation.

“This rebate is calculated solely on the normal transit dues stipulated by the transit dues table, in addition to surcharges levied on container tiers,” SCA said.

The rebate applies for containers ships transiting the canal from May 15, 2025 for a period of 90 days.

The Suez Canal has been hard hit by owners and operators diverting vessels via the Cape of Good Hope over the last 18 months to avoid attacks in the Red Sea by the Houthi.

Virtually all large container ships serving the Asia – Europe/Med, and US East Coast trades have diverted via the Cape.

Last week a ceasefire deal was announced between the United States and the Houthi with the group saying it would cease to attack commercial shipping.

Although there have been no confirmed attacks against commercial vessels since late 2024, owners that diverted via the Cape of Good Hope have been reluctant to return to Red Sea and Suez Canal transits due to the uncertainty that surrounds the security situation.

A return is also dependent on the insurance situation and as yet the Joint War Committee in London has not altered its status.

Courtesy: Seatrade Maritime Mews