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Suez Canal adds rebates for chemical and product tankers

Photo: suezcanalwiki.jpg
The Suez Canal Authority (SCA) released an updated version of the fixed rebate scheme last week.

Leth Agencies, which works closely with the SCA to guide owners and operators through the complex process of successfully winning rebates, said a total of 11 new fixed rebates had been added, while 24 fixed rebates have been extended for another six months, to the end of the year, and four rebates adjusted.

“The segments of petroleum product tanker and chemical and other liquid bulk tankers has been added to the fixed rebate family,” it added.

Containership voyages headed from the US East Coast to varying destinations in China and South-East Asia can obtain rebates of between 35% and 55% on SCA toll fees, depending on precise points of departure and arrival, until 31 December.

According to Leth’s website, the SCA introduced the long-haul rebate system as a marketing policy to attract new customers and encourage more vessels to use the Suez Canal in 1987. “A percentage reduction on the vessel’s canal tolls is made depending on type of voyage (ballast/laden), cargo type, vessel size, speed, consumption, port of loading and destination. Calculations are also subject to current market conditions such as bunker prices, freight- and hire rates and piracy costs,” it said.

“The rebate is granted based on an application submitted to SCA for the voyage between vessel’s last load port and first discharge port. Ballast transits are also eligible for rebates. The application is a comparison of the voyage calculations based on a Suez Canal transit versus alternative routes. SCA has also introduced several fixed rebates (fixed percentage rebate off canal tolls) for crude oil carriers, LNG tankers, LPG tankers, containerships, vehicle carriers and dry bulk vessels.”