Suez Canal Authority extends rebate to attract container ships

The Suez Canal Authority (SCA) has extended its 15% transit fee rebate for container ships until 30 June 2026.

IMAGE: A large container ship passing the Suez Canal, Egypt. Getty Images

First introduced on 13 May, the discount applies to both laden and ballast container vessels with a gross tonnage of 130,000 or more. A laden ship carries cargo, while a ballast ship sails empty or with minimal cargo for stability. The rebate applies to transits in either direction and is automatically granted, requiring no prior application or paperwork.

It had previously been extended to 31 December 2025.

The measure is part of the SCA’s ongoing effort to regain traffic lost after Yemen’s Houthi rebel group began attacking commercial vessels in the southern Red Sea and Bab el-Mandeb Strait in November 2023. In response to the security risks, many major container and tanker operators rerouted their ships around the Cape of Good Hope, bypassing the Red Sea entirely.

Traffic remains significantly reduced. Over the past month, the Suez Canal route handled an average of 23 cargo ships/day and 11 tankers/day—less than half the 51 cargo and 25 tanker ships/day recorded during the same period in 2023, according to the IMF’s PortWatch platform.

Despite this, SCA chairman Admiral Ossama Rabiee has affirmed “the Suez Canal's readiness to receive mega container ships.”

This month, he also met representatives from 20 shipping lines and agencies to discuss the evolving situation in the Red Sea and Bab el-Mandeb and its implications for global trade moving through the Canal.

By Tuhin Roy

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