Suez Canal increases transit fees, putting pressure on global supply chains

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Container ships pass through the Suez . Canal (Photo: Istock)

Management agency Suez Canal is increasing transit fee (transit tolls) that they charge for ships passing through the vital waterway, in a move expected to put further inflationary pressures on global supply chains.

The Suez Canal Authority will seek to capitalize on the recovery in goods trade by increasing transit fees across the canal by 6% from February 2022, 11 months after the canal was blocked for nearly a week. by Container ship Ever Given. About 12% of international trade flows through the canal, which is the shortest maritime route between Asia and Europe.

The Suez Canal Authority has benefited from the recovery of economies since the first wave of coronavirus lockdowns was lifted. The agency cites the International Monetary Fund and the World Trade Organization as predicting that global trade traffic will grow by 6.7% in 2022, which means “good returns” for businesses. Ocean shipping company.

The fee increase will not apply to ships carrying liquefied natural gas. Cruise ships will also be excluded as the sector has experienced a deeper shock than others from the pandemic.

“The travel and tourism industry has suffered great damage worldwide, including cruise ships and cruise ships, and is expected to fully recover by 2022,” the agency said.

Last month, the canal recorded its highest monthly output in history, at 112.1 million tonnes. A total of 1,847 ships passed through the canal in October, 14% more than a year ago.

The canal authority also reported record revenue for the past financial year, despite a six-day bottleneck after the 220,000-ton Ever Given ran aground in March. Revenue rose to $5.84 billion in the 12 months to June 30 as strong commodity demand spurred a recovery in trade.

Shipping companies also benefited from this recovery. Maersk, the world’s largest container shipping group, posted its most profitable quarter ever this week. Maersk also predicts the global supply chain crisis will continue to play out next year, with shortages of port workers and truck drivers causing disruption.

According to George Lawrie, vice president and principal analyst at research firm Forrester, the global shipping industry is still recovering from the disruption caused by Ever Given.

“Since the pandemic, changes in consumption and shopping patterns, including a dramatic increase in e-commerce, have increased import demand for consumer goods container trains to the North. America and Europe. Additionally, new markets for manufactured goods in Asia also require more ships for weekly service, which in turn means more containers at sea,” he said this week.

“Combining the issues suggests that global container traffic has yet to recover from the recent Suez congestion.”

According to Phaata

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