Egypt’s Suez Canal mulls discounts on transit fees to bring back traffic

CAIRO (REUTERS): Egypt’s Suez Canal Authority chief, Osama Rabie, said the authority is considering offering discounts ranging from 12 per cent to 15 per cent on transit fees to help restore traffic in the strategic waterway reeling from attacks by Yemen’s Houthis on Red Sea shipping.

Rabie told privately owned Sada al-Balad television channel in a phone interview that the discounts could be applied within days after a ratification by Egyptian President Abdel Fattah al-Sisi.

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He spoke after revenue from the canal continued to plunge on the back of attacks on shipping by Yemen’s Houthis, who say they are trying to shut off cargo bound for Israel in support of Palestinians in Gaza, but who are also chasing ships away from the canal.

Revenue from the Suez Canal, a key source of foreign currency for Egypt, plummeted to $880.9 million in the fourth quarter from $2.40 billion a year earlier, the victim of Houthi attacks, central bank figures showed earlier this month.

Last week, Rabie met with representatives from shipping agencies who called for temporary incentives that would help offset increased insurance costs for vessels operating in the Red Sea, which they deemed a high-risk zone.

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The meeting followed an Oman-mediated ceasefire between the United States and the Houthis, under which the US agreed to stop bombing the Houthis in Yemen in return for the group agreeing to stop attacking US ships. The accord with the Iran-backed group does not include Israel.