Suez Canal Providing Respite for Shipping Industry

Whereas the slow pace of recovery of the global economy fails to ease the pain in the global shipping industry significantly, the “no increase of Suez Canal tolls” announcement by the Suez Canal Authorities is a welcome easing.

On February 4, 2015, the Suez Canal Authority published its Transit Dues for the year 2015, stating that there will be no increase of tolls for 2015. They shall thus remain unchanged from 2014. Only exception to the overall respite is an increase of 10% for LNG ships as the standing 35% reduction in tolls changes from May 1st 2015 to a 25% reduction.

Chief Shipping Analyst at BIMCO, Peter Sand, said,  “As the global economics to not provide any respite, this announcement is welcome. Dry bulk shipping industry is particularly hard hit at the moment, with the BDI hitting a three-decade low level.  Any offsetting of the cost escalation of daily operations is useful. Bunker prices are down 60% from seven months ago and now unchanged tolls are well received."

“Realizing that now is not the time for price hikes, show that the Authority is aware of the serious condition of global shipping.”