The Suez Canal Authority (SCA) is implementing a 15% discount on transit fees for cargo ships with a minimum capacity of 130,000 metric tons, starting May 15. This decision highlights the ongoing impact of the Red Sea security crisis on a vital maritime route connecting the Mediterranean Sea to the Arabian Peninsula and North-East Africa. The discount will be available for 90 days, according to SCA Chairman Admiral Ossama Rabiee.
This move follows Rabiee’s outreach to major shipping operators, encouraging them to resume navigation through the canal as security in the Red Sea appears to improve after a recent ceasefire agreement involving the Iran-backed Houthi militia. The Houthis, however, have stated that Israel-linked vessels remain targets, contributing to continued uncertainty in the region.
Houthi attacks targeting vessels believed to be associated with Israel have led many shipping lines to avoid the Red Sea, significantly affecting Suez Canal revenue, which plummeted from $10.3 billion in 2023 to approximately $4 billion in 2024. Despite the offered discounts, the critical question remains whether shipping vessels will return to this essential global trade artery.
