Suez Canal Set to Lose $10 Million from Ships Taking the Long Route

The Loadstar ^ | May 6, 2020 | Gavin van Marle

[C19fan]

What a detour....

[Governor Dinwiddie]

And also avoids the Somali pirates.

[Leaning Right]

> The Suez Canal Authority (SCA) is set to lose over $10m in revenue... <

Will Pelosi demand that we bail out the Suez Canal Authority?
Just asking for a friend.

[DannyTN]

Egypt must really be gouging on fees.

[Blood of Tyrants]

Wrong canal.

[Blood of Tyrants]

My bad. I had the wrong canal.

[Ann Archy]

Going thru the Suez Canal was one of my most exciting moments! LOVED IT!

[Meatspace]

“...a fully laden 20,000 teu container vessel on a headhaul Asia-Europe sailing could expect to pay around $700,000 in transit fees.”

That’s a whole lot of quarters to drop into that basket at the toll booth.

[Pearls Before Swine]

And also avoids the Somali pirates.

What I was thinking, as well.

$10 million sounds like a drop in the bucket compared to their operating budget. But if the trickle rises to a flood, there will be calls by Egypt for ruthless suppression of piracy. Money talks!

[Tijeras_Slim]

Somebody’s got to go back and get a shitload of dimes!

[Vendome]

And deprives China of more revenue...

[C210N]

[cpdiii]

“Egypt must really be gouging on fees.”

Not really. As a business you make the max profit you can. The low cost of fuel today made it advantageous for ships to take the long way to Europe around The Cape.

The shippers made logical decisions. Egypt also made logical decisions by reducing transit fees.

THE FREE MARKET WORKS.

[libertylover]

But that’s only 14-15 ships. Is the $10,000,000 loss per year, per month, per week, or per day?

[BwanaNdege]

???

What do you mean?

[stationkeeper]

Something tells me it will be little more than 10mil.

[HartleyMBaldwin]

Take the long way home...

[jjotto]

Per the number of transits the ships skipped.

They lowered the transit rates enough to undercut the longer route.

[US Navy Vet]

Been there(E. Coast US to N. Indian Ocean) both ways, Suez is MUCH better(and FASTER)!

[Zhang Fei]

[Wrong canal.]

---

How so? Any ship that goes through the Suez Canal has to go by the Somali coast. Somali pirates have been known to venture hundreds of miles out. Whereas ships that skip the Suez stay thousands of miles away from that coast line.

https://www.vox.com/2016/4/25/11503152/shipping-routes-map