Suez Canal to cut box ship rates 3-50pc from October 1 to pip Panama

24th August 2017

THE Suez Canal will reduce containership rates between three and 50 per cent from October 1, said Suez Canal Authority (SCA) chairman Mohab Mamish, who also president of the economic district of the Suez Canal.

According to a Middle East Monitor report, vessels carrying more containers will receive the larger discounts. In July, the SCA offered a discount of up to 45 per cent to large oil tankers en-route from the United States to the Gulf.

Egypt has been cutting transit fees to attract more shipping between East and the West, said the Middle East Monitor report.

Suez sees itself as a rival to the Panama Canal, boasting that it can transit the largest containerships in the world which now run to 20,000 TEU while the Panama Canal is limited to 14,000-TEUers.

BlueWater Reporting data shows Suez using 56 container services, deploying 569 vessels averaging 10,792 TEU while Panama uses 30 services, deploying 277 vessels, averaging 6,548 TEU.