Suez Canal Cuts Transit Fees by 15% to Attract Container Ships Back

Egypt has reduced Suez Canal transit fees by 15% for large container vessels in a bid to lure them back, though experts say the decision to return to the Red Sea route still depends on security risk assessments.

Suez Canal (Photo: Shutterstock/Phaata)

Egypt has announced a 15% discount on Suez Canal transit fees for the next three months for container ships with capacities of approximately 13,500 TEU or more. The move aims to encourage shipping lines to resume using the canal amid signs that the Red Sea shipping crisis may be easing.

According to the Suez Canal Authority (SCA), the measure was taken “at the request of container ship owners and operators, and in light of recent positive developments regarding the security situation in the Red Sea region and the Bab al-Mandab Strait.”

Due to escalating security threats—especially following Houthi (Yemen) attacks on commercial vessels in support of Hamas amid the conflict with Israel—most international commercial fleets, particularly container ships, have been avoiding the area. As a result, Suez Canal transit revenues have dropped by more than half over the past year.

Last week, U.S. President Donald Trump declared that the 17-month-long Red Sea shipping crisis is nearing an end. Speaking from the White House, he said the Houthis had agreed to stop attacking vessels, and the U.S. would also halt airstrikes against the group. This statement was confirmed by the Omani foreign minister, who had acted as a mediator. However, Houthi forces have continued to launch missiles toward Israel, prompting military responses from Tel Aviv.

Most major container shipping lines, when questioned during recent earnings calls, maintained that it is still too early to resume operations through the Red Sea.

Vincent Clerc, CEO of Maersk, emphasized last week that returning to the Red Sea route based on a vague ceasefire agreement would be “irresponsible,” warning that the region remains too unstable to guarantee safety.

Speaking to Splash, Lars Jensen, CEO of consulting firm Vespucci Maritime, said that he doesn’t think the 15% transit fee reduction will make a real difference in the decision whether to go through the Red Sea at this point. That decision will be based on a risk assessment.”

Analysts at investment bank Jefferies echoed this sentiment in a client report last week: Given the rapidly evolving situation, they don’t expect a surge in ships returning to the Red Sea route, as risks remain present.

The report also noted that the container shipping sector stands to be the most affected if the market shifts as Red Sea transit resumes.

Jefferies estimates that rerouting around the Cape of Good Hope has reduced global shipping capacity by 11–12%, a key factor distinguishing a “healthy” market from one where shipping lines lack pricing power.

(Source: Kênh đào Suez giảm 15% phí quá cảnh nhằm thu hút tàu container quay lại hành trình)