The Suez Canal Authority (SCA) has introduced a 15% discount on transit fees for container ships.

IMAGE: A convoy of container ships passing through the Suez Canal. Getty Images

The move is intended to encourage container lines to return to the Red Sea, as security concerns appear to be easing, with no major Houthi attacks on ships reported in recent months.

From 15 May, the Suez Canal Authority (SCA) will offer a 15% rebate on transit dues for both laden and ballast container ships with a gross tonnage of 130,000 or more, according to an official circular. A laden container ship carries cargo, while a ballast ship sails empty or with minimal cargo to maintain balance.

The rebate will be valid for 90 days and apply to vessels transiting in either direction through the canal. It will automatically be applied upon transit, with no need for advance requests or documentation.

This initiative is part of the SCA’s broader strategy to recover traffic lost during recent months, when many vessels rerouted around the Cape of Good Hope due to security threats in the Red Sea.

The SCA recently met with representatives from 25 major shipping lines and maritime agencies to discuss how improving security in the Red Sea and Bab El-Mandab region could affect shipping schedules and operations through the Suez Canal in the near future.

“We call upon all shipping lines to give serious consideration to assessing their navigation schedules, and examine the possibility of the gradual return of a number of the vessels affiliated to them to the region,” said SCA chairman Admiral Ossama Rabiee.

Echoing this sentiment, Tariq Zaghloul, chief executive of CMA CGM in Egypt and Sudan, said its container ships will continue to sail through the Suez Canal and was optimistic that recent developments will boost the number of vessels transiting the Canal in the coming period.

By Tuhin Roy

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