Suez Canal Renews Incentives for Various Vessels until end of 2025

The Suez Canal Authority has renewed its decision to implement the reduction granted to chemical and other liquid tankers, loaded or empty, operating on direct voyages between the US Gulf—starting from the Port of Miami and ports located west of it within the US Gulf, and ports located south of the US Gulf on the one hand, and regions of India and its easternmost regions on the other—until December 31, 2025.

A shipping circular confirmed that these incentives include granting chemical tankers operating between the US Gulf and ports west of the Indian subcontinent, starting from the port of Karachi in Pakistan to the port of Cochin in western India—a 25% reduction in transit fees.

The incentives for tankers operating between the US Gulf and ports east of the port of Cochin, up to and including Port Klang, are being extended to a 55% reduction, while the Malaysian port of Port Klang and its easternmost regions are being granted a 75% reduction in regular fees until the end of this year.

The Suez Canal Authority has also decided to continue granting chemical and other liquid tankers, both loaded and empty, operating between the ports of the east coast of North America—located north of the Port of Miami—to India and its eastern side. Ports east of the Port of Cochin up to and including Port Klang receive a 25% discount on tolls, while those operating up to and east of Port Klang receive a 35% discount on regular tolls.

The SCA has renewed the discounts offered to loaded and empty car carriers operating directly between the ports of the east coast of the Americas and the Gulf of Mexico on the one hand, and the ports of the Far East and Southeast Asia, starting with Port Klang and its eastern side, on the other, until December 31, 2025.

The authority confirmed that the incentives include a 40% discount on regular tolls for car carriers operating between Norfolk and its northern side on the one hand, and Port Klang and its eastern side on the other. A further 55% discount is offered to vessels operating between the ports south of Port Klang. Norfolk on one side and the ports of Port Klang and to the east. Car carriers represent approximately 0.29% of the types of vessels transiting the Suez Canal in 2024.

The Suez Canal Authority has also renewed incentives offered to dry bulk vessels, both loaded and empty, operating in both directions between the ports of Mauritania and its southernmost ports in West Africa and the ports of the Arabian Gulf, India, its eastern regions, and the Far East. These incentives range from 15% to 75%, until December 2025.

Dry bulk vessels represent approximately 27.3% of the total tonnage of trade transiting the Suez Canal during the first quarter of 2025.

The authority has decided to extend the discount granted to liquefied petroleum gas (LPG) carriers on their direct voyages, whether loaded or empty, operating between the ports of the East Coast of the Americas and the Gulf of Mexico and the ports of India and its eastern regions, until December 31, 2025.

The Authority confirmed in a navigational notice on its website that the incentives include grants to LPG carriers. Loaded and empty LPG vessels operating between the US Gulf starting from the Port of Miami and the ports located to the west of it within the US Gulf, as well as the ports located to the south of the US Gulf on the one hand and the ports of western India and the Maldives up to the Port of Cochin, will receive a 25% discount on the regular transit fees.