Suez Canal tries to win back container shipping

The Suez Canal Authority has announced that, starting May 15, it will offer a 15% discount on transit fees for a period of 90 days. The discount applies to ships with a net tonnage of at least 130,000 tons (i.e., at least 13,500 TEU). With this measure, the authority hopes to encourage shipping companies to resume using the Red Sea route, which has been largely avoided since Houthi rebel attacks in 2023. This shift has cost the Suez Canal billions of dollars in lost revenue.

During the pandemic years, the Suez Canal Authority repeatedly increased toll rates to capitalize on the booming container shipping sector, with the last increase of 15% in 2022. While the new discount is presented as a concession to container ship operators, shipping companies remain cautious. Despite a recent deal between the Houthis and the U.S. government, security along the route remains uncertain, and analysts argue that prolonged peace is necessary before operators will consider returning.

One shipping company is considering resuming passage through the Suez Canal, but others are holding back for now. Meanwhile, stability in the region remains distant, especially as tensions between Israel and the Houthis continue to rise.