The Strategist

Suez Canal to make $700M more profit annually because of fee hikes

09/19/2022 - 09:56

Due to a 15% rise in transit fees beginning in 2023, the Suez Canal will see an increase in income of nearly $700 million per year, said the Suez Canal Authority's Osama Rabie said.

Copernicus Sentinel-2, ESA
Copernicus Sentinel-2, ESA
After transit prices increase, we anticipate revenue growth of $700 million yearly, Mr. Rabie stated in an interview with CNBC Arabia (quoted by Reuters). From January 2023, the cost of traveling through the Suez Canal will rise by 15%.

Duties on tourist and dry freight ships will both rise by 10%. The Suez Canal Authority justified these actions by pointing to increased oil and gas prices as well as growth in the daily cost of renting most types of ships.

Following an increase in transit fees for ships of 5–10% on March 1, June and May saw record monthly earnings. Revenues from the Suez Canal hit a record $7 billion for the fiscal year 2021–2022. In late 2022, the canal administration intends to IPO 10 to 15 percent of its Canal Mooring subsidiary on the local stock exchange.