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The Suez Canal Authority (SCA) has introduced a new initiative to bring container ships back to the Suez Canal. Responding to requests from shipowners and operators, and due to recent improvements in the security situation in the Red Sea and Bab al-Mandab Strait, the SCA is offering a 15% discount on tolls for large container ships. This discount applies to container ships of 130,000 net tonnage or more, whether they are carrying cargo or not. The discount will be applied directly during transit without needing extra paperwork and will be available for ships passing through the canal from 15 May for 90 days.

The Suez Canal has faced significant challenges over the past 18 months, with many shipowners and operators rerouting vessels via the Cape of Good Hope to avoid attacks in the Red Sea by the Houthi. Almost all large container ships serving the Asia – Europe/Mediterranean and US East Coast routes have taken this alternative path. However, a recent ceasefire agreement between the US and the Houthi has brought some hope. The Houthi have agreed to stop attacking commercial ships, and there have been no confirmed attacks on commercial vessels since late 2024. Despite this, many owners are still hesitant to return to Red Sea and Suez Canal routes due to ongoing security concerns.

The return of container ships to the Suez Canal also depends on the insurance situation. Currently, the Joint War Committee in London has not changed its status, adding another layer of complexity for operators. The Suez Canal Authority's discount offer could encourage the return of container ships, but the overall situation remains uncertain and highly depends on security and insurance considerations.

Source: Seatrade Maritime News