Egypt's Suez Canal mulls discounts on transit fees to bring back traffic
CAIRO: Egypt's Suez Canal Authority chief, Osama Rabie, said the authority is considering offering discounts ranging from 12% to 15% on transit fees to help restore traffic in the strategic waterway reeling from attacks by Yemen's Houthis on Red Sea shipping.
Rabie told privately owned Sada al-Balad television channel in a phone interview that the discounts could be applied within days after a ratification by Egyptian President Abdel Fattah al-Sisi.
He spoke after revenue from the canal continued to plunge on the back of attacks on shipping by Yemen's Houthis, who say they are trying to shut off cargo bound for Israel in support of Palestinians in Gaza, but who are also chasing ships away from the canal.
Revenue from the Suez Canal, a key source of foreign currency for Egypt, plummeted to $880.9 million in the fourth quarter from $2.40 billion a year earlier, the victim of Houthi attacks, central bank figures showed earlier this month.
Last week, Rabie met with representatives from shipping agencies who called for temporary incentives that would help offset increased insurance costs for vessels operating in the Red Sea, which they deemed a high-risk zone.
The meeting followed an Oman-mediated ceasefire between the United States and the Houthis, under which the U.S. agreed to stop bombing the Houthis in Yemen in return for the group agreeing to stop attacking U.S. ships. The accord with the Iran-backed group does not include Israel.
(Reporting by Menna Alaa El-Din and Ahmed Tolba and Mohamed Ezz in Cairo; Editing by Chris Reese and Matthew Lewis)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The National
4 hours ago
- The National
Gaza 'freedom flotilla' rescues four migrants at sea
A group of activists heading for Gaza on a "freedom flotilla" say they have rescued four migrants at sea in an encounter with the Libyan coastguard. The yacht Madleen, whose crew includes climate campaigner Greta Thunberg, set off from an Italian port four days ago in a symbolic bid to break Israel 's blockade of the territory. Sailing in the Mediterranean on Thursday, the ship was diverted by a mayday signal from an EU border patrol drone, leading it to a deflating vessel in Egypt 's search and rescue zone, organisers said. They said 30 to 40 people were on board. As the Madleen drew closer, its crew saw a Libyan coastguard vessel approach and four people jump into the water, according to a statement from the Freedom Flotilla Coalition. It said the Madleen's crew rescued the four people, who were identified as refugees from Sudan. "People would rather throw themselves into the sea than be taken to Libya," said French politician Rima Hassan, who is on the voyage. A statement from the organisers said: "The individuals rescued had fled violence and persecution in Sudan, only to face further violence, detention and torture in Libya." They are appealing to Greece, Italy or Malta to take the people to safety. Ms Hassan is a French member of the European Parliament who is of Palestinian descent. She has been barred from entering Israel because of her opposition to the war in Gaza. Game of Thrones actor Liam Cunningham is also on board. A previous voyage to Gaza ended in May when a different ship was hit by drones, which Freedom Flotilla organisers blamed on Israel. The yacht Madleen is named after a Gazan fisherwoman, according to the organisation, which says the flotilla is "carrying a cargo of hope and humanitarian aid". Israel blockaded all aid to Gaza for 11 weeks beginning in March. A limited amount of aid began entering last month, with food now being distributed by a private US foundation whose operations have been marred by violence. The rate of young children suffering from acute malnutrition in Gaza has nearly tripled since the ceasefire collapsed in March, according to data released by the UN on Thursday. It said about 3,000 children screened in the second half of May were affected. That was almost three times the rate in February, when a pause in fighting allowed for hundreds of aid trucks to enter Gaza each day. The Israeli army said on Thursday that Hamas was "doing everything in its power to sabotage" aid deliveries by a new US foundation. It released what it said was a recording of a Gaza resident blaming Hamas for gunfire near the aid sites. "They want to foil the plan so that the aid will go to them," the army quoted the person as saying.
The National
5 hours ago
- The National
EU seeks Gulf allies in quest to protect Red Sea
The two shores of the Red Sea – the Gulf region and Horn of Africa – and the European Union should come together to strengthen security and protect joint interests in the crucial global waterway, a EU envoy told The National on Thursday. The Red Sea is one of the world's most vital arteries for global shipping, with up to 15 per cent of the world's maritime trade passing through. But situated between the Gulf region and the Horn of Africa, it has not remained immune to the conflict surrounding it. Yemen's Houthi rebels have carried out several attacks on shipping lanes since November 2023, claiming solidarity with Palestinians in Gaza under Israeli bombardment – with Red Sea shipping only now beginning to recover. Simultaneously, conflict continues in Sudan and in Somalia, where the threat of Al Shabab is also growing. 'The two shores of the Red Sea together with the EU' should combine efforts to 'discuss joint interests, joint possibilities to strengthen security in the Red Sea', said Annette Weber, EU Special Representative to the Horn of Africa. 'We all use it for our trade, for LNG, green hydrogen, underwater connectivity,' Ms Weber said of the waterway's strategic importance and the need to collaborate on securing it. Ms Weber said that while bilateral engagement takes place between individual countries from the Gulf and the Horn of Africa, there is not much regional co-operation. 'A structure needs to be envisaged together,' she said. 'It needs initial effort for us to have a group, to talk, to see what our common ideas are.' She said there was no such multilateral initiative yet but that 'we hope to start very soon' because the threats are coming from both sides of the Red Sea. 'We have the Houthis, we have Al Shabab, we have ISIS, we have the risk of, for example, Sudan working closely with Iran in the Red Sea – that is not in our interest.' While Europe does not have a physical shore on the Red Sea, its trade has been significantly impacted by the attacks on the shipping lane. 'Everyone is suffering – including Europe – because of the Houthi attacks,' she said. A truce, mediated by Oman, has been in place since last month between the Houthis and the US which stipulates that the Iran-backed group would refrain from attacking vessels in the Red Sea. The agreement came after weeks of intensified US bombardment on Houthi targets in Yemen and growing frustration with Europe in the current administration. Fading US support Ms Weber said the leaked Signal group chat – where top US officials were sharing Yemen war plans – was a wake up call for the EU. 'I just hate bailing Europe out again,' US Vice President JD Vance was reported as writing in the leaked conversation. Defence Secretary Pete Hegseth replied: 'Vice President, I fully share your loathing of European free-loading. It's pathetic.' 'The US has made it very clear. I don't see them leaving tomorrow, but I think it's very clear,' Ms Weber said of a lack of desire by the US to continue financially supporting the EU's security in the Red Sea. The EU launched Operation Aspides – named after the Greek word for 'shield' – in February last year in response to Houthi attacks on shipping in the Gulf of Aden and Red Sea to the Suez Canal. It provides close protection for commercial ships, intercepts strikes on them, and monitors and assesses potential threats. Red Sea marine traffic has increased by 60 per cent, to 36 to 37 ships a day, since August last year, but is still short of volumes seen before Yemen's Houthis began attacking ships in the region, the commander of the Aspides naval mission told Reuters on Thursday. Ms Weber praised the EU's co-operation and engagement with the Gulf countries with regards to the Red Sea, but also in Sudan and Somalia. Gulf and the Horn of Africa 'It is clear that the Gulf countries are playing a very key role in the Horn of Africa, in the Red Sea and that is something where we feel this is not just a joint challenge but also a joint opportunity,' she said. The co-operation goes beyond security, with both working on wider interests including energy diversification, water harvesting and investment. 'Of course the humanitarian catastrophe in Sudan is a key aspect and we do work and co-ordinate quite closely.' Famine has been detected in at least five areas of Sudan, including three camps for displaced people in Darfur, the Integrated Food Security Classification has said. The UN and rights groups have repeatedly warned of the dire humanitarian situation on the ground. Ms Weber described that conflict as obstructing the delivery of aid and stressed the need for more to be done to ensure that humanitarian assistance is provided. Aid groups say they struggle to reach the most vulnerable as warring parties limit access, especially in Darfur. A convoy of 15 lorries carrying food to the famine-stricken city of El Fasher came under attack in North Darfur late on Monday. Five were killed and several others injured, said the World Food Programme and Unicef, the two UN agencies involved. The war has killed tens of thousands of people, displaced about 13 million and left more than 25 million facing acute hunger, famine conditions are reported in areas across the impoverished nation. 'For the EU, it's still important to say and to understand that for us the future of Sudan is a civilian-led government, it's not either military ruling the country,' Ms Weber said. 'This is really where we need to come back to what they have promised, even before the coup,' she said of the pledges made by both sides to ensure a future government would be chosen by the people. 'We need to bring the young people back because they are the future of the country,' she said of the EU's vision for peace in a postwar Sudan. Several attempts have been made to push for an end to the conflict such as the Jeddah talks, which began weeks after the fighting broke out. They have focused on establishing ceasefires, enabling the delivery of humanitarian assistance and confidence-building measures towards a permanent cessation of hostilities but have fallen short of reaching a truce. 'As a military, you provide security for your country, you don't rule the country,' she added while calling for another Jeddah-type format to be held soon to reach an end to the fighting. However, Ms Weber acknowledged that Sudanese returning to Khartoum was a hopeful and positive indication that there was a will to become back to Sudan. But, she warned of the need to ensure safety and basic necessities such as electricity and water for those returning. In addition to Sudan, the envoy highlighted that the EU was moving in the same direction as regional countries such as Egypt and the UAE, with Somalia being another example of co-operation. Recent reductions in US aid and military support could potentially undermine efforts to combat Al Shabab and a possible American withdrawal from the country could leave a gap. 'We see the US moving away from Mogadishu more towards the north of Somalia, towards the shore with the Red Sea,' she said of shifting American interests and priorities in the country. 'They understand Al Shabab less as an international terrorist threat and see it more as a domestic threat.'
The National
14 hours ago
- The National
Trump defends travel ban and says Egypt 'has things under control'
US President defends decision to exclude Egypt from travel ban that affects citizens of 12 countries
