Suez Canal Authority Offers 15% Toll Rebate amid Red Sea Security Improvements

The Suez Canal Authority (SCA) has announced a 15% rebate on transit tolls for large container ships, came into effect from 15 May for a 90-day period. The move comes in response to requests from shipowners and operators and follows reported improvements in the security landscape in the Red Sea and Bab al-Mandab Strait.

The rebate will apply to container vessels of 130,000 net tonnage or more, whether laden or in ballast. It will be applied automatically during transit without the need for additional documentation. According to the SCA circular, the rebate is calculated on the standard transit dues, including any surcharges applicable to container tiers.

This strategic incentive comes as the Suez Canal continues to feel the impact of widespread vessel rerouting via the Cape of Good Hope. Over the past 18 months, nearly all large container ships servicing Asia–Europe/Med and US East Coast trades have avoided the Suez route due to attacks in the Red Sea by Houthi militants.

Although commercial shipping attacks have ceased since late 2024, shipowners have remained cautious. Last week’s ceasefire agreement between the US and the Houthi, along with the group’s pledge to halt attacks on commercial vessels, marks a key turning point. However, uncertainty lingers, and full confidence in Red Sea transits is yet to be restored. By offering this toll rebate, the SCA aims to incentivise a gradual return of major carriers to the canal route, restoring traffic and revenue lost to the longer, costlier Cape diversion.