ICS Protests Suez Canal Toll Increases

press release
Monday, February 04, 2013
ICS Secretary General, Peter Hinchliffe

The International Chamber of Shipping (ICS) - the principal international trade association for shipowners, representing all sectors and trades and over 80% of the world merchant fleet – has voiced serious concerns about toll increases just announced by the Suez Canal Authority (SCA), to be implemented on 1 May 2013. 

 

For all but the smallest ships, the Suez Canal toll increases range from about 3% to 5% according to tonnage and ship type.  These follow across the board increases of 3% which were implemented in March last year despite industry protests.

 

ICS Secretary General, Peter Hinchliffe, remarked: “Most international ship operators are trading in the worst shipping markets in living memory due to there being too many ships chasing too few cargoes. This is not the time for the SCA to be announcing increases, which for some trades seem very dramatic indeed, and which many shipowners will find impossible to pass on to their customers.”

 

He added: “We recognize that, with pressure on Egypt’s tourism and its other economic problems, there is increased pressure on the SCA to maintain what is now the country’s biggest source of foreign revenue.  But the effect of these increases will be to give a spur to those owners who may already be considering the Cape route as a serious alternative.”

 

The route via the Cape of Good Hope is already becoming relatively less expensive as many ships resort to slow steaming in an effort to reduce costs and to deliver the reductions in CO2 emissions which are now demanded by their customers. 

 

Moreover, the entrance to the Suez Canal, via the Red Sea and the Gulf of Aden, is already unattractive due to the continuing threat of Somali piracy, compounded by instability in the Yemen.  Recent events in Egypt, including riots in Ismailia and Port Said, are generating concerns about the security of the Canal itself.    

 

“We are also disappointed by the lack of consultation that preceded these increases,” said Mr Hinchliffe.  “To the SCA’s credit, the Canal has so far continued to function smoothly.  But ICS will be repeating its request for full and proper consultation between the industry and the SCA, particularly whenever toll adjustments are being contemplated.”

 

The ICS Board of Directors will be considering the matter further at its meeting in London tomorrow (5 February), together with the status of ongoing discussions between ICS and the Panama Canal Authority about a new toll structure which is being introduced to coincide with the expansion of the Panama Canal, expected to be completed in 2014/15.
 

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Technology

Virtual AIS Beacons Employed in MH370 Search

Vesper Marine, a manufacturer of marine safety products and virtual Aids to Navigation (ATON), announced that its Virtual AIS Beacons are employed in the search

Alu Design to Create Next Generation of Marine Chairs

There’s a new designer in the driving seat at Alu Design. Per Ivar Selvaag, the former Lead Designer at BMW Group and Chief Designer of Peugeot’s concept car division,

New Dual Use Piracy Barrier Launched

Guardian Maritime launched Guardian Greenwater, a new product that was developed to deal with the issue of greenwater on-board deck following turbulent weather conditions,

Ports

NYK Line Joins PNW West Coast Metro Pool

Effective October 20, 2014, NYK Line has become a member of the PNW West Coast Metro Pool (WCMP) operated by Trac Intermodal. The WCMP operates chassis at all major marine terminals,

ISS Manages Heavy-lift Project at Port of Mombasa

Inchcape Shipping Services (ISS) announced it has completed another complex heavy-lift project in Africa, this time at the Port of Mombasa in Kenya. ISS was

New Gate Transits the Panama Canal

The first gate for the new locks in the Pacific side began transit Wednesday morning through the Panama Canal, signaling another historic milestone in the progress of the Expansion Program.

Finance

Gulf Craft to Invest $100m in Dubai Shipyard

Company plans to invest $100 million over the next five years in the development of a new shipyard in Dubai Maritime City to build a global luxury yachts manufacturing

Pentair Reports 3Q 2014 Sales of $1.8 bi

Pentair plc today announced third quarter 2014 sales of $1.8 billion. Sales were up 3 percent compared to sales for the same period last year. Third quarter 2014

FortisBC Starts Expansion of Tilbury LNG Facility

FortisBC – a subsidiary of Fortis Inc. has officially started construction of its $400 million Tilbury LNG Facility expansion project today. The company is adding 1.

Government Update

Russian Minister to Intervene with Gazprom on Slovakia Gas Flow

Russia's Energy Minister Alexander Novak will intervene with Gazprom to raise reduced gas shipments to Slovakia to contracted levels, Slovakia's economy ministry

AMSA Rescues 2 East of Darwin After Boat Sinks

The Australian Maritime Safety Authority (AMSA) coordinated the rescue of two men early this morning East of Darwin. About 4.30am AEDT this morning, AMSA detected

USS Milius Departs on Deployment

The guided missile destroyer USS Milius (DDG 69) departed Naval Base San Diego Oct. 20 on an independent deployment to the Western Pacific and Indian Oceans.

Logistics

NYK Line Joins PNW West Coast Metro Pool

Effective October 20, 2014, NYK Line has become a member of the PNW West Coast Metro Pool (WCMP) operated by Trac Intermodal. The WCMP operates chassis at all major marine terminals,

Long Beach Cargo Continues to Climb

Cargo container traffic rose 7.3 percent in September at the Port of Long Beach compared to the same month last year, making for the Southern California seaport’s busiest September since 2007,

Continership Alliance Expands to US Trades

The CKYHE Alliance (COSCO, "K" LINE, Yang Ming, Hanjin Shipping, and Evergreen Line) has announced they will expand their cooperation scope to U.S. Trades and CKYHE

 
 
Maritime Careers / Shipboard Positions Maritime Security Navigation Pipelines Port Authority Salvage Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.3662 sec (3 req/sec)