In a bid to attract cargo vessels back, Egypt’s Suez Canal Authority (SCA) has announced a 15% discount on transit fees for large container ships (over 130,000 tonnes) starting May 15, 2025. This comes in the wake of declining traffic and revenue due to the Red Sea security crisis triggered by Houthi attacks, which forced global shipping companies to avoid the Suez Canal and reroute via Africa’s Cape of Good Hope.
The Suez Canal’s revenue dropped significantly—from $10.3 billion in 2023 to around $4 billion in 2024—as shipping companies took longer, more expensive alternate routes.
SCA Chairman Ossama Rabiee recently met with Italy’s ambassador and contacted 25 major shipping operators, encouraging them to return to the Suez route. His appeal followed the announcement of a ceasefire between the US and Houthi rebels. However, Houthis clarified that Israel-linked ships will still be targeted.
The SCA hopes that discounted fees and signs of peace will bring back major container ships, a key revenue source for the canal. Analysts say the shift will depend on how secure the Red Sea remains.
The Suez Canal handles 12–15% of global trade and 30% of global container traffic, making it a vital link in global shipping and energy flows.