reply Suez Canal "toll" is going up again

According to the Associated Press, Egypt's Suez Canal Authority has issued a statement saying that it will increase the Suez Canal's ship tolls in January 2023, with a 10% increase in tolls for cruise ships and vessels carrying dry cargo, and a 15% increase in tolls for the rest of the vessels.　　The Suez Canal Authority Chairman Usama Rabieh said that the increase in the cost of waterway operation, maintenance and maritime services due to the soaring global inflation rate is the main reason for this toll increase.　　Frequent price adjustments　　Suez Canal is known as the world's waterway "crossroads", is one of the world's busiest waterway. About 12% of global trade, 7% of oil transported through the Suez Canal, accounting for 30% of the total global container traffic. The canal revenue is also an important source of Egypt's national revenue and foreign exchange reserves.　　It is reported that the Egyptian Suez Canal Authority has raised canal tolls three times this year, ranging from 5% to 10%. In July, Suez Canal Authority Chairman Osama Rabieh issued a statement saying that the canal's operating figures for fiscal year 2021/2022 set a record at $7 billion, an increase of more than 20 percent year-on-year.　　"Historically, the Suez Canal's tolls have gone through multiple phases of adjustment." Zhao Jun, associate professor at the Institute of Middle East Studies at Shanghai International Studies University, told the newspaper that from 1956 to 1965, the Suez Canal had relatively little traffic, plus the passing ships were not strictly classified, and the difference in tolls was not significant. After the Fourth Middle East War, the Suez Canal was reopened and charges were differentiated according to vessel type and tonnage. The cost of this tanker crossing increased significantly due to the war-induced spike in oil prices. In the late 1990s, the Suez Canal formed a model of charging by eight types of vessels and different tonnage segments, which has largely been used to date. Until late in the Mubarak regime, the Suez Canal maintained annual revenues of between $4 billion and $5 billion.　　According to public data from the Suez Canal Authority, in August this year, the monthly toll for ship passage in the Suez Canal reached another record high of $745 million, more than 10% of the canal's revenue for 2021/2022. After the toll increase in 2023, the Suez Canal is expected to add another $700 million in annual revenue, said Usama Rabieh.　　"Price hike" inevitable　　In a statement, Usama Rabieh said that the canal's tariff increase is "inevitable and necessary" in the face of rising energy prices, freight rates, etc. British Maritime News reported that the increase in tolls is justified at a time when fuel costs are rising and ship operators passing through the Suez Canal are saving on fuel costs with shorter routes.　　"The Suez Canal's tolls are in a long-term dynamic adjustment process based on global market conditions. It makes sense that the Suez Canal will raise prices by 10% from 2023." Zhao Jun pointed out that oil, remittances, canals and tourism are the four pillars of Egypt's economy. Affected by the new crown pneumonia epidemic and the international situation, Egypt's energy and remittance income suffered a significant setback, and today has rebounded, but there is greater uncertainty, while tourism is so far difficult to say optimistic, only the canal has become the most stable source of income. Previously, in order to boost tourism, the Suez Canal was once free of cruise ship tolls. At present, Egypt's sovereign debt crisis is serious, deeply troubled by the shortage of foreign exchange, the urgent need to raise canal tolls to supplement foreign exchange reserves.　　In recent years, the Suez Canal from time to time, "blocking the boat" events. According to Reuters, on August 31 this year, a Singapore-flagged oil tanker ran aground in the southern section of the Suez Canal single channel extension, resulting in a brief suspension of the waterway.　　"The Suez Canal has seen a year-on-year rise in the number of ships coming and going, requiring continuous infrastructure improvements. in 2014, the Suez Canal underwent a major expansion, the costs of which have not yet been fully recovered. Currently, the canal is still being widened and deepened, and a lot of funding still needs to be raised." Zhao Jun said.　　The impact is limited in scope　　The canal increase will provide important financial support for Egypt's economic development. Egyptian President Sisi recently announced that he will allocate funds from the Suez Canal's revenue to establish three yacht ports to support the national economy. According to Sisi, the construction of the ports will create a large number of jobs and boost tourism in the surrounding area as part of Egypt's integrated development plan in the Mediterranean and Red Sea.　　"In terms of the global trade pattern, the rise in Suez Canal fees will be transmitted to ship dealers and other subjects, which may further push up global inflation and affect the global economic recovery." Zhao Jun pointed out that the Suez Canal to raise the "toll", a small part of the shipping demand may be replaced by air, rail and other modes of transport. However, given the economic value of the Suez Canal for international commodity transportation, which is difficult to replace, and the boom in international shipping, the impact of the toll increase on the transportation pattern of global trade is limited.　　According to Gilbert Lagat, CEO of the East African Shippers Council, the Suez Canal "toll" increase mainly affects East African traders. East Africa and Europe, Asia's trade is extremely dependent on the Suez Canal, toll increases will complicate the import and export of goods in the region, for economies of scale, some ships may change routes.　　"For this toll increase should also take a wait-and-see attitude." Zhao Jun said, the Egyptian Canal Authority in the past price adjustments are thunderous, this toll increase is scheduled to take effect the following year, in fact, leaving a certain buffer. "At present, global oil prices have a downward trend, the Suez Canal toll increase is implemented as scheduled, but also need to pay close attention to the direction of energy prices."