Suez Canal achieves 20% year-on-year revenue increase in Q1 of 2022

Mai Ghandour, Saturday 2 Apr 2022

The Suez Canal achieved a 20 percent increase in revenues during the first quarter of 2022, showing that the canal has not been affected by the Ukrainian-Russian war, Head of the Suez Canal Authority (SCA) Osama Rabie said.

File photo: Egypt s Suez Canal
File photo: Egypt s Suez Canal

The canal’s revenues reached $1.691 billion from January to March, compared to $1.409 billion during the same period last year, Rabie said in a statement on Saturday.

The SCA's figures showed a "remarkable" rise in the number of transiting ships during the first quarter of 2022, with a 15.8 percent Y-O-Y increase, reaching 5,303 ships compared to 4,581 ships during the same period last year, according to Rabie.

During the first quarter of 2022, the total tonnage received by the canal increased 7.4 percent, with the net tonnage hitting 313.3 million tonnes, compared to 291.7 million tonnes during the same period last year.

Navigational reports also revealed a significant increase in the transit rates of various types of ships compared to the same period last year, as the number of bulk vessels, container ships and vehicle carriers increased by 29.1 percent, 17 percent, and 27.2 percent, respectively, Rabie said.

The number of cruise ships passing through the canal has doubled in the last three months compared to the same period last year, while general cargo ships and tankers increased 18.1 percent and 6.5 percent respectively, he added.

Daily transit rates also hit record levels, with 74 ships crossing on Saturday and 80 ships on Friday, hitting a total net tonnage of nine million tonnes over the two days alone, the statement added.

The head of the authority stressed that the rise in the average daily number of ships transiting the canal during the last period reflects the recovery of the maritime transport market and the remarkable growth in the global trade movement.

Rabie stressed the authority's keenness to deal with the various challenges facing the maritime transport market by adopting a package of flexible marketing policies through which it can keep pace with market changes while taking into account customers’ interests.

In 2021, the Suez Canal recorded a historic $6.3 billion in annual revenue and over 1.17 billion in tonnages.

Transit fees through the Suez Canal are set to increase starting May, according to a recent decision by the SCA.

The international waterway hiked its fees in March with various vessels paying surcharges of up to 5-10 percent. This was the second increase this year after it had previously increased transit tolls for vessels by six percent the month earlier.

The Suez Canal — which connects the Mediterranean and the Red seas — is the shortest maritime route between Asia and Europe and the fastest crossing from the Atlantic Ocean to the Indian Ocean.

Work is currently underway to extend the two-way segment of the Suez Canal by 10 km as part of efforts to improve the international waterway.

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