April was a record month for one of the world trade’s most crucial infrastructure arteries. Both earnings and freight volumes reached new heights for the Suez Canal.
Photo: Amr Abdallah /Ritzau Scanpix
Last month, the Suez Canal in Egypt earned USD 629m from ship traffic, an increase of 13.6% compared to the same month in 2021. As such, April was the most lucrative in the Canal’s more than 150-years-long history.
According to news agency Reuters, 114.5 million tonnes of cargo were carried through shipping’s crucial passageway, yet another record.
The number of ships traveling the 193 kilometers between the Mediterranean Sea and the Red Sea was also approaching record levels. 1,929 vessels passed through the Canal during April, an increase of 6.3% in comparison to the same month in 2021 – and the third-highest number of ships ever.
According to Suez Canal Authority (SCA) Chair and Managing Director Osama Rabie, the number of oil tankers soared by 25.8% compared to April 2021, while the increase for LNG tankers and container vessels came to 12% and 9%, respectively.
And if April went well, the future may turn out even better for the Suez Canal. As of May 1, SCA raised prices for shipping by up to 20%.
Such is the case for chemical tanker vessels, while dry bulk ships are targeted with 10%. Container ships have to pay more as well due to changes in calculation methods.
According to SCA, the temporary price raise is ”in line with the significant growth in global trade, improvement of ships’ economics, the Suez Canal waterway development and the enhancement of the transit service.”
