Suez Canal Offers Discounts to Attract Cargo Ships

Egypt's Suez Canal Authority is offering a 15% discount on transit fees for large cargo ships, aiming to attract vessels back to this vital trade route. The discount comes in response to a security crisis in the Red Sea, where Yemeni Houthi rebels have targeted commercial ships linked to Israel. This situation has caused major shipping lines to divert their vessels, leading to a significant drop in Suez Canal revenue from $10.3 billion in 2023 to around $4 billion in 2024. With the ongoing conflict, Indian exporters, heavily reliant on the Suez route, are facing increased shipping costs and delays, making it challenging to maintain profit margins.