Egypt’s Suez Canal has introduced a new perk for VLCC owners in order to prevent them avoiding the waterway.
The Suez Canal Authority (SCA) will offer a 45% reduction in transit tolls to tankers of 200,000 dwt and above coming from the Gulf of Mexico, the Caribbean and the north coast of South America.
The new circular took effect on 24 July as an experimental period to be renewed.
VLCC’s above 200,000-dwt can pass the canal, however they have to comply with a draft restriction of 66 feet.
Wilhelmsen Ships Service (WSS), a global maritime services company with offices in Egypt and Panama, told TradeWinds: "We are seeing an increasing number of rebate circulars from the SCA, reflecting the continued turmoil in the commodity market and the effect its having on shipping."
The company added that further circulars from the Suez Canal would come as no surprise due to increased competition from the new expanded Panama Canal.
WSS added: "One of our Chinese customers even has their own member of staff just to deal with rebate applications from the SCA."
The incentive from the Suez Canal follows a similar reduction offered to containerships coming from the port of New York and heading to southeast Asia.
Container lines were granted a 30% toll discount shortly after the expanded Panama Canal started to regain some of the Asia-US East Coast trade, which it had previously lost to Suez.
The New Suez Canal, which cost Egypt $8.5bn, was inaugurated a year ago.
