Suez Canal Authority to raise transit fees next year

Egyptian authorities managing the Suez Canal say they will raise transit fees for vessels passing through the waterway by up to 15 percent in 2023.

The Suez Canal Authority announced on Saturday that transit fees for dry bulk carriers and cruise ships will increase by 10 percent while those for other vessels will go up by 15 percent starting in January next year.

The authority cited rising costs of the waterway's operations stemming from higher oil prices.

Annually, about 20,000 vessels, including cruiser and container ships, pass through the Suez Canal, which connects the Mediterranean Sea to the Red Sea.

The canal's transit fees are an important source of revenue for the Egyptian government.

Arab media reports say that the Egyptian government expects revenue to increase by 700 million dollars annually after the hikes.

The fees were raised in 2020 and March of this year.

There are concerns that higher transit fees could push up transportation costs and accelerate global inflation.