Ship in the Suez Canal. Ahram Gate.
The extended discount applies to vessels with a net tonnage of 130,000 or more, whether loaded or empty, according to a SCA circular issued on Tuesday.
The incentive, initially launched on 15 May for 90 days, came as a direct response to requests from shipping companies that faced increased costs due to longer routes taken during recent Red Sea tensions.
It mainly aimed to encourage major shipping lines to resume using the canal. The decision also coincides with a period of relative stability in the Red Sea region.
Hopes for restored stability in this vital global shipping corridor were boosted by a ceasefire between the US and Yemen’s Houthi rebels, brokered by Oman on 6 May after weeks of US airstrikes.
Since the start of Israel’s war on Gaza in October 2023, the Houthis have targeted Israeli-linked ships, disrupting traffic and forcing major carriers to reroute via the Cape of Good Hope — a more protracted and expensive journey.
The disruption slashed the Suez Canal revenues by over 60 percent in 2024, costing Egypt an estimated $7 billion.
Signs of recovery began in February, with SCA Chairman Osama Rabie announcing the return of several vessels to the canal route over the past few weeks.
The Suez Canal links the Red Sea to the Mediterranean and attracts 12 percent of global trade.
The canal is among Egypt's key foreign currency sources, along with tourism and remittances.
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