Logistics: Suez Canal increases transit tolls putting pressure on global supply chains
MEKSEA.COM – The Suez Canal Authority is increasing the transit tolls it charges for vessels passing through this vital waterway. That puts more inflationary pressure on global supply chains.
From February 2022, the Suez Canal Authority will increase transit tolls through the canal to 6%. It is known that this is the shortest maritime route between Asia and Europe. Currently, about 12% of international trade traffic is passing through this canal. Therefore, after the global covid-19 epidemic is under control, the world economy recovers, global trade traffic will increase by 6.7% in 2022, the Suez Canal Authority will reap great profits from shipping companies.
However, the fee increase will not apply to liquefied natural gas carriers and cruise ships.
In October, 1,847 vessels passed through the canal. Total cargo throughput is equivalent to 112.1 million tonnes. Which is the highest monthly throughput in history 14 percent more than a year ago.
Shipping containers passing through the Suez canal last month reached a record. (photo: Internet)
Despite the EverGreen vessel disruption in March, revenue at the canal grew to $5.84 billion in the 12 months to June 30, 2021 as strong cargo demand spurred a recovery in trade.
Currently, the global shipping industry is still slowly recovering from the disruption caused by the Ever Green ship. Since the pandemic, the way consumption and shopping have changed, the sharp increase in e-commerce has increased import demand for consumer goods container shipments to North America and Europe. Additionally, new markets of manufactured goods in Asia also require more vessels for weekly service, this means an increasing demand for international shipping.
Meksea’s factories started to ramp up production as soon as the epidemic in Vietnam was effectively controlled.
By Hayati (Meksea Team)
If you found this topic interesting, please click the Like button below, so we may continue to expand this topic. Leave a comment with your thoughts for the author team to discuss