Egypt is slashing Suez Canal transit fees by 15% for large container ships in a bid to win back trade lost due to Red Sea security threats. The discount, starting May 15 and lasting 90 days, targets vessels with a net tonnage of at least 130,000 metric tons, regardless of whether they are full or empty. The move follows a US–Houthi ceasefire deal mediated by Oman, easing tensions in the region. Canal revenues plunged to $880.9 million in Q4 2024, down from $2.4 billion a year earlier, due to attacks by the Yemen-based Houthi rebels aimed at disrupting cargo bound for Israel. With insurers charging high-risk premiums for vessels plying the Red Sea, Egypt hopes this incentive will draw ships back through the canal—and boost its foreign currency earnings.
