With the expansion of the Suez Canal, decline of the global trade and drastic drop in the bunkers’ prices, one would imagine that the Canal tolls and rebate system should be readjusted in an effort to alleviate the financial difficulties being felt worldwide. However, the Suez Canal Authority (SCA) was not that responsive to these difficulties, till there most recent circular release which we will be discussed furhter down in this article . A number of our clients requested us to check the latest on the Suez Canal tolls and on the rebate system and here is what we would like to share.
The Suez Canal is operated through the Suez Canal Authority (SCA) which is an independent governmental authority enjoying absolute powers through the Canal. This brings us to the Suez Canal tolls; the SC transit tolls are calculated in SDR on basis of the Suez Canal Net Tonnage (SCNT). The SCA has set a constant coefficient for each type of vessel that differs depending on each vessel’s SCNT and also in case the vessel is in ballast or laden condition.
The SCA is trying to adopt a commercial approach striving to add new clients while maintaining old ones, and hence, is taking into account that when calculating the canal tolls, in some cases, it would be more beneficial for vessels to pass around the cape of Good Hope instead of transiting the Suez Canal.
Our claims handlers attended an interesting conference, which was held in Cairo during the period 22-24 February 2016. The Conference was entitled the Suez Canal Global Conference, Challenges and Opportunities. The conference was inaugurated by the Egyptian Prime Minister, and was attended by a number of ministers and the Suez Canal Authority’s chairman. Eng. Naguie Ahmed Amin, the conference general secretary notes that one of the objectives of the conference is to reiterate the global presence and impact of the Suez Canal.
Industrial and Port Developments in East Port Said, Sokhna Port and the Surrounding area of the Suez Canal
The following is a PDF document report prepared by Eldib Pandi.
Download: Eldib Pandi December 2015 Circular (PDF 791 KB)
As a result of the political turmoil in Egypt, the present unrest as well as the threats from different political factions, the Egyptian Navy and the Armed Forces have heightened the state of emergency in Sinai, all cities along the Canal in general with special emphasis on the Suez Canal, which constitutes one of the main sources of income to Egypt.