Suez Canal Authority Reduces Transit Fee by 48% for Oil Tankers

The Suez Canal Authority said it decided to grant a 48% reduction in the canal passage fees for oil tankers which contains more than 250 thousand tons.

The authority added, in a decision dated back to November 24, that the reduction includes "tankers loaded from northwestern European ports to Gibraltar and destined for the ports of Southeast Asia and the Far East."

The spokesman of the Suez Canal, George Safwat added, that this decision will be extended until May 31, 2021, indicating that the reason behind it is to encourage ships to pass through the Canal.

"The operating companies will be required to submit a request through the shipping agency before the tanker sails from the port, specifying the ship’s data, the port of departure, the date of sailing, the port of arrival, the intermediate ports, and the purpose of stopping there," Safwat continued.

He also added: "The expected time for the ship’s arrival to the canal, the condition of the ship whether it is loaded or empty, the type and the quantity of the shipment will be required."

It is noteworthy that the ship transit fees will be paid in full upon passing through Suez Canal, provided that the reduction will be settled after completing all the required documents within a calendar year starting from the day following the date of transit, noting that all the documents of the voyage needed should be sent in one time.

Furthermore, the Canal Authority stated that in case the documents are not completed within the specified period or any of the aforementioned conditions are not met, the reduction value granted to the ship will be terminated.