Suez Canal Revenues Jump 98.5%

The Suez Canal’s monthly revenues reached EGP 26.4 billion in September 2023, a growth of 98.5%, year-on-year.

During the past year, the Suez Canal witnessed a noticeable increase in its revenues, which attracted the attention of many and raised questions about the reasons and factors behind this notable financial success, as one of the main factors that contributed to this increase is the increase in maritime traffic through the canal.

Efforts to improve infrastructure and increase efficiency in managing the canal have also contributed to attracting more ships to use it. Updates in infrastructure and development of services can make the canal more attractive to companies and ships, strengthening its position as an essential sea lane.

Administrative decisions taken to increase tolls across the Canal could also be another reason for increased revenues. Decisions to increase tolls may be a result of infrastructure improvements or improved quality of services provided, which reflects the desire to provide improved services to users and customers.

It is worth noting that geopolitical developments may also play a vital role in increasing revenues, as changes in maritime navigation methods or the preference for shipping through the canal as a result of changes in global policies may significantly affect the volume of business that passes through the canal.

The recent increase in Suez Canal revenues and its achievement of high monthly revenues was attributed to several reasons, the most important of which is the increase in Suez Canal transit fees more than once, starting last February by 6% and then another increase in fees in March. Additional fees for several types of ships, and canceling the discount for liquefied gas ships, which reaches 15%.

Also, the rise in oil prices to exceed $105 per barrel, as a result of the war that broke out between Russia and Ukraine makes the Suez Canal the first choice for ships economically in order to save operating costs.

There is another increase in the value of the Special Drawing Rights unit (SDR) against the dollar, which is how transit fees are calculated, and that global supply chains are still suffering from disruption, especially after the closure of the port of Shanghai, in continuation of the repercussions of coronavirus.