Egypt Lures Ships Back to Suez with 15% Discount

Starting May 15, the Suez Canal Authority is introducing a 15% discount on transit fees for vessels with a net tonnage exceeding 130,000 tons. The discount will be in effect for 90 days and is aimed at encouraging ships to return to the Suez route after most large vessels began diverting around Africa in late 2023 due to the threat of Houthi attacks. In recent months, despite ongoing threats, the situation in the Red Sea has gradually stabilized. Last week, the United States reached a truce agreement with the leadership of the Houthi organization; however, the agreement does not apply to Israeli ships. Transit fees from the Suez Canal are one of Egypt’s key sources of budget revenue. In the fourth quarter of last year, the canal operator’s revenue from tolls amounted to $891 million—nearly three times less than the same period the previous year, when the crisis had just begun to unfold.