The Suez Canal Authority has further extended rebates for containerships from ports of the East Coast of America heading to South and South East Asian ports.
The discounts originally introduced in March 2016 for a limited period have been both increased and extended in duration on several occasions.
The rebates, which expired on 30 June this year, have now been extended to the end of December analyst Alphaliner reported in its weekly newsletter.
The authority will continue to grant all containerships coming from ports north of the Port of Norfolk on the US East Coast and heading to Port Klang and ports eastwards a 45% rebate on canal tolls.
For ports south of Norfolk vessels departing and calling Port Klang and eastwards will continue to be granted a 65% rebate in tolls, while those calling Colombo and eastwards will be given a 55% rebate.
The initiative was originally introduced to stem of loss of business from lines deciding to sail via the Cape of Good Hope on the backhaul to Asia given lower fuel prices. The Suez Canal has also faced competition from the expanded Panama Canal for containerships sailing on the all-water route between Asia and the US East Coast.
Copyright 2017 Ships & Ports Ltd. Permission to use quotations from this article is granted subject to appropriate credit given to www.shipsandports.com.ng as the source.