Suez Canal increases discount to compete with low oil prices

Foto: Vesselfinder
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In circular issued this week they are increasing their discount scheme clearly aimed at trying to prevent more container vessels from taking the long route around Africa, posted Lars Jensen from SeaIntelligence in his linkedIn account yesterday.

For North Europe to Asia they now offer a rebate of 17% compared to the normal tolls, though not for certain surcharges. This is an increase from the previously offered discount of 6% instituted from 1st of April which did not prevent some vessels from going the long route.

For East Coast North America to Asia, the rebates have been increased to the range of 60-75% depending on the specific origin and destination. This is an increase from the rebate already in place which was in the range of 45-65%.

The new discounts are in effect from 1st of May to 30th of June.
Presently at least 8 vessels operated by the Ocean Alliance and the 2M Alliance either have, or are scheduled to, bypass the Suez Canal and take advantage of the low oil prices versus the canal tolls.

Whether this new discount will be sufficient to prevent the bypass will be revealed when we see the actual routing of the large vessels over the coming weeks.

Source Lars Jensen LinkedIn

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