The Suez Canal, during January 2022, reach unprecedented levels. In terms of ships and revenue was the best January in the history of the canal. One of the main factors for the success was the flexible pricing policies. The main ones are the Long Haul Rebate System, Tolls Permanent Reductions, Cargo Incentive Rebate Policy, Co-operation with SUMED pipeline, and Time Saving Service.
It is necessary to discuss some statistics in order to explain the dimension of the event. The Suez Canal has allowed for the passage of 1774 ships, a 12% increase over last year. Total net tonnage was 106.1 million tons, up 1.8 percent over the same month in 2021. Excluding navigation services, revenue in January 2022 was around $544.7 million.
This year’s crossing rates for all types of ships climbed substantially. The number of bulk carriers rose by 25.1 percent, while container ships increased by 11.5 percent. All of these metrics demonstrate the effectiveness of flexible pricing and pricing policies in dealing with global economic issues.
These policies were managed to reduce the negative impact of the pandemic on the shipping industry, which resulted in gaining customer confidence and attracting new shipping lines. The marketing policies contributed to attracting 336 ships during January 2022; representing 19% of the total number of ships that cruised during the month.
Suez Canal plans for the future
In response to the current crisis, the Suez Canal has decided to raise transit rates by 6%. According to studies, this will enhance the Canal’s earnings by more than $400 million over the expected $7 billion in 2022.
The Egyptian parliament has adopted legislation to create the “Suez Canal Authority Fund.” With the goal of establishing an independent legal identity, the fund’s board of directors may establish branches or offices in Egypt.
The primary purpose is to contribute to the long-term economic development of the Suez Canal facilities. Furthermore, having a structural and economic base to endure future crises is one of the purposes of this fund.