Suez Canal allows extension of rebates for container ship till the year end

The Suez Canal Authority has further allowed extension of rebates for container ships from ports of the East Coast of America which would be heading towards South and South East Asian ports.

The discounts had initially been introduced in March 2016 for a limited period. But these have been both increased and extended in duration on several occasions. 

The rebates, which have already expired till 30 June 2017, have now been extended till December end. This was reported by Analyst Alphaliner in its weekly newsletter.

The authority will continue to grant all container ships which arrive from the ports north of the Port of Norfolk on the US East Coast and heading towards Port Klang and ports eastwards a 45% rebate on canal tolls. 

For ports south of Norfolk vessels departing and calling Port Klang and eastwards will continue to be granted a 65% rebate in tolls, while those calling Colombo and eastwards will be given a 55% rebate.

The initiative had initially been introduced to curb loss of business from lines deciding to sail via the Cape of Good Hope on the backhaul to Asia given lower fuel prices. The Suez Canal has also been facing a lot of competition from the expanded Panama Canal for container ships sailing on the all-water route between Asia as well as the US East Coast.

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