Suez Canal Cuts Boxship Fees to Attract More Traffic
- Business & Finance
In an effort to “meet the desire” of ship owners and operators and attract more vessels, the Suez Canal Authority has decided to cut tolls for selected container ships.
According to the Suez Canal Authority, container ships coming from port of Norfolk and its northern ports heading to the Port of Kelang and its eastern ports, would be granted a reduction of 45% of the Suez Canal normal tolls.
Furthermore, boxships sailing from ports south of port of Norfolk and heading to Port of Kelang and its eastern ports would be granted reduction of 65%, while vessels heading to Port of Colombo and its eastern ports, located just up to port of Port Kelang, would see a discount of 55% of Suez Canal normal tolls.
To benefit from this circular, the companies have to submit a request before sailing through its shipping agency, the authority added.
“The ship must not call any port in between port of origin and port of destination for commercial purposes provided that ship’s operator must forward a formal declaration about that. In case of calling at in-between ports for non-commercial purposes, the authorities of these ports have to submit a certificate to the SCA, stating the reasons of calling,” Suez Canal Authority said.
A certificate from the last port of origin stating the date of sailing and a certificate from the first port of arrival stating date of arrival should be submitted within sixty days from the date of the canal transit.
The toll cut took effect on June 6, 2016, and is going to be in force for 90 days, until September 3, 2016, GAC Egypt said, adding that the reduction is to be renewed.
In April, 2016, the Suez Canal Authority granted a reduction of 30% of the Suez Canal normal tolls for container ships coming from Port of New York and its southern ports heading to South East Asian ports, such as port of Port Kelang and its eastern ports.
During 2015, the Suez Canal recorded an increase in the number of transiting vessels and total net tonnage, as 17,483 vessels transited the Suez Canal, an increase of 2% compared to 2014, according to the authority’s data. The net tonnages transported through 2015 registered 998.7 million tons in 2015 an increase of 3.7% compared to 2014.