Suez Canal Toll Hikes Cause Protests from Shipping Associations

The Round Table of international shipping associations has protested against the third consecutive annual increases in Suez Canal tolls, saying carriers are “dismayed” by steep hikes with a short notice period.

2014.03.11 - Suez Canal Toll Hikes Cause Protests from Shipping Associations

Suez Canal toll hikes have been raised by 3% in 2012 and by 5% in 2013. As if these were not enough the Suez Canal Authority announced in early February that transit fees would be increased by more than 4% for vessels larger than 20,000 dwt in the dry bulk and energy sectors from May.

The last announcement by the Suez Canal resulted in a quick response by the International Chamber of Shipping, BIMCO, Intertanko and Intercargo protesting to the SCA chairman, Vice-Admiral Mohab Mohamed Hussien Mameesh and expressing their discomfort in having to pay more fees and bear higher expenses at a time of macroeconomic uncertainty.

Since the global economic crisis shows little sign of ending while expecting no recovery within 2014 the recent decision of the SCA to raise the toll hikes seems unrealistic.

The ICS issued similar warnings when the SCA hiked fees last year, though the increases were maintained.

Source: INTERMANAGER

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