“For all but the smallest ships, the Suez Canal toll increases range from about 3% to 5% according to tonnage and ship type,” the ICS said.
“These follow across the board increases of 3% which were implemented in March last year despite industry protests.”
ICS Secretary General, Peter Hinchliffe said: “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.”
Hinchliffe warned that the toll increases, due to be introduced on 1 May 2013, will spur owners to avoid the canal in favour of the Cape route.
“We recognise 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 ICS said 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.
“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.”
The ICS said recent events in Egypt, including riots in Ismailia and Port Said, are “generating concerns about the security of the Canal itself.”
Hinchcliffe added that the ICS was particularly disappointed by the “lack of consultation” that preceded these increases.
Toll increases for the Suez Canal as well as a new toll structure for the Panama Canal will be one of the key topics discussed at an ICS board of directors meeting in London on Wednesday.
