The Suez Canal Authority (SCA) announced a 15% reduction in transit fees for large container ships—effective immediately for a 90-day trial period. The reduction applies to vessels with a net tonnage of 130,000 tons or more, as global shipping routes remain fluid amid continued disruptions in the Red Sea and rerouting around Africa.
The announcement, made during the visit of Italian Ambassador Michele Quaroni to the Suez Canal, underscores Egypt’s push to reassert the canal’s strategic and economic primacy, following a turbulent year of Houthi-linked security threats and costly diversions for global carriers.
“Suez is open for business—and ready to compete,” declared Admiral Osama Rabie, Chairman of the Suez Canal Authority. He emphasized that the fee reductions respond directly to requests from major clients—including the world’s top shipping lines—seeking reassurance about the safety and reliability of Red Sea transit.
“The relative calm in the security situation presents an opportunity,” Rabie said. “We are acting with flexibility and speed to rebuild trust and make the Suez route competitive again.”
According to data reviewed by Middle East Observer, canal revenues declined by nearly 40% in Q1 2025 compared to the previous year, as dozens of shipping giants—led by Maersk, MSC, and CMA CGM—diverted to the Cape of Good Hope due to drone and missile threats near Bab al-Mandab.
Now, with a marked de-escalation of attacks and increased regional naval coordination, Egyptian authorities see room to re-engage those companies.
Ambassador Quaroni praised Egypt’s role in stabilizing the Red Sea corridor, calling the Suez Canal “a global asset” and signaling Rome’s interest in deeper maritime collaboration. He expressed Italy’s intention to:
- Cooperate on shipbuilding and repair at SCA’s shipyards
- Promote Italian yachts and leisure vessels to use the canal’s marinas
- Enhance Mediterranean-Red Sea maritime tourism
Italian maritime firms, including Fincantieri and Marina di Venezia, have reportedly explored joint ventures in naval unit construction and logistics services with Egyptian counterparts, according to sources within Egypt’s Ministry of Transport.
A senior SCA official, revealed that the authority is in preliminary talks with three major European maritime operators to establish logistics and MRO (maintenance, repair, overhaul) partnerships at the Ismailia and Port Said hubs.
These deals are part of a broader strategy to modernize the canal’s service ecosystem, including:
- Launching AI-based traffic optimization systems
- Expanding shipyard capacity for high-tonnage vessels
- Integrating green energy into port and docking operations
“This isn’t just about offering a discount—it’s about transforming Suez into a full-service maritime corridor,” the official said.
Global maritime analysts note that while the security risk has diminished, uncertainty remains high. Lloyd’s List Intelligence reports that over 32% of global east-west container volume continues to bypass the canal, even as insurers reduce war risk premiums in the region.
“Egypt is clearly making a calculated move here,” said Dr. Hossam El-Din Mansour, a trade economist at the University of Alexandria. “The fee cut is short-term, but it sends a long-term signal: Suez will not sit back and wait—it’s moving proactively to reclaim market share.”
The fee reduction marks a strategic shift in Egypt’s approach to maritime diplomacy—less about waiting for global calm, and more about forging partnerships and offering incentives to shape the post-crisis recovery.
