Suez Canal toll earnings set to continue falling, as vessels re-route around the Cape of Good Hope

07.02.2024

As we enter into the third month of escalating conflict in Yemen that has prompted significant rerouting of vessels with far-reaching consequences for global trade and transport, the latest trade data from Veson Nautical indicates a notable shift in traffic patterns. Geopolitical tensions and conflict have raised maritime security concerns in the region, given its strategic importance and critical maritime trade routes.

In addition, the ongoing crisis in Yemen has implications for traffic through the Suez Canal and therefore Egypt, which may incur substantial costs due to the disruptions in trade and transport. Although this situation could potentially serve as a catalyst for increased diplomatic efforts to broker peace, considering the economic losses incurred by the Egyptian government as a result of the crisis. Understanding the economic impact on Egypt and specifically the Suez Canal might encourage a more proactive approach towards resolving the conflict and mitigating its adverse effects on global trade.

We take a look at the changes in the Suez Canal toll fees for crude Tankers, Bulkers, LNG, LPG and Containers over the period spanning from the beginning of 2023 to early January 2024. This analysis provides valuable insight into the financial implications for the Suez Canal and for the Egyptian government as Suez Canal transits reach a low.

Overall toll fees fall c.40% since November 2023