Egypts Suez Canal Authority SCA has unveiled a new plan to encourage more vessels to use the canal, as security concerns in the Red Sea have led many ships to reroute via the Cape of Good Hope.
Admiral Osama Rabie, Chairman of the SCA, confirmed that the authority is exploring the possibility of offering shipping companies discounts of up to 15 on transit fees. This initiative comes in response to a significant drop in maritime traffic, triggered by ongoing instability in the Red Sea region.
Rabie explained that vessel crossings in April 2025 were notably lower compared to previous months, with many shipping firms remaining cautious due to the security threats in the area. He revealed that the SCA is considering temporary reductions in transit fees ranging from 12 to 15, in a bid to restore normal traffic levels by the end of 2025.
In an interview with Egyptian news channel Sada El-Balad, Rabie emphasised that the proposed discounts are part of a wider strategy to improve the competitiveness of the canal, particularly in relation to alternative routes such as the Cape of Good Hope.
While traffic through the canal had slightly improved in March compared to February, Rabie acknowledged that overall shipping activity had not yet returned to pre-crisis levels. He has been in direct talks with various shipping lines and companies to persuade them to return to the canal, but noted that concerns persist due to ongoing Houthi attacks on vessels and the absence of a ceasefire in Gaza.