Increase In Suez Charges Set for Next Year

The Suez Canal Authority have confirmed that a 15% rate hike will be applied to their charges for next year, which will undoubtedly be factored into ocean freight costs from Asia.

A big factor in the price that the authority charges ocean freight carriers is the average level of ocean freight rates that steamship lines have been charging.

While demand and rates have softened, ocean freight prices have been at astronomical levels during the past two years, which we understand has been factored into the 15% increase.

As became obvious during the ‘Ever Given’s’ 2021 grounding and blockage of the route, the canal is a major gateway for container ships travelling between Asia and Europe. Therefore, we would expect these additional costs to be reflected in ocean freight charges from January.

The SCA also suggested that rising energy costs for both crude oil and natural gas, along with global inflationary pressures, are also reflected in the significant hike in its prices.