Suez canal to raise transit tolls as cargo trade bounces back

Suez canal to raise transit tolls as cargo trade bounces back

The Suez Canal Authority is increasing the fees it charges ships passing through the critical waterway, in a move expected to pile further inflationary pressure on global supply chains.

It will seek to capitalise on the recovery in cargo trade by raising its transit tolls by 6% from February, 11 months after the canal was blocked for nearly a week by the Ever Given container ship. About 12% of international trade passes through the canal, which is the shortest maritime route between Asia and Europe.

The Suez Canal Authority has benefited from the rebound in economies since the first wave of coronavirus lockdowns were lifted. It cited an International Monetary Fund and World Trade Organization forecast that global trade traffic will rise by 6.7% in 2022, which it said would mean “good profits” for shipping companies.