First modification:
The increase comes as there is more pressure on the supply chain due to the war between Russia and Ukraine. The conflict has affected the export of Russian oil, as well as the output of grain from Ukraine and Russia. The decision could affect prices at a time of high tension and inflation worldwide.
The increase in tariffs for cargo ships, including bulk carriers and oil tankers, became official this Tuesday, when the Suez Canal announced the third price increase in a month for fuel transport.
According to the Egyptian state entity that manages this maritime passage, it will be as of May 1 when “the additional tariffs imposed on oil tankers loaded with crude that transit the Suez Canal in both directions will be modified to become 15% of the normal transit rates,” they confirmed on their website.
According to the agency, the new increases are modifications of the increases in surcharges imposed in March on ships transiting the waterway. As detailed, the surcharge rates for chemical tankers and other liquid bulk cargo ships will increase from 10% to 20%, while cargo and bulk ships will increase their surcharges to 10%.
The announcement is worrying at a time when oil prices are volatile due to the war in Ukraine and fears of new sanctions that will limit supply.
Another of those affected is the wheat market, another grain whose international price is skyrocketing in the markets due to the conflict between Russia and Ukraine, two of the largest grain exporters.
The canal justifies the increase because, according to them, they come “in line with the significant growth of world trade … and the development of the waterway and the improvement of transit service.”
The canal authority is working to widen and deepen the southern part of the waterway, where in 2021 a huge ship ran aground and closed the canal, causing six days of disruption to global shipping.
Although last year they promised that they would freeze the rates for gas ships, on March 1 they applied an increase of 7% for the passage of ships with liquefied petroleum gas and 10% for those with natural gas. Two weeks later, it eliminated the 15% discount that had been applied to the latter for seven years.
About 10% of world trade passes through this maritime passage, including 7% of the world’s oil. The Canal connects the Mediterranean and Red seas. The pass first opened in 1869 and is a source of foreign exchange for Egypt.
In 2021, 20,649 ships transited through this canal, this represents an increase of 10% compared to the 18,830 ships in 2020. According to official data, the canal’s annual revenue reached 6.3 billion dollars in 2021, the highest in its history. history.
With EFE and AP
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