Tugboats help tow the Greek-registered MT Sounion, which was attacked by Yemen's Houthi militants last year in the Red Sea, after it was successfully towed through Egypt's Suez Canal, in Ismailia, Egypt March 10, 2025.
In a phone interview with Sada al-Balad television, Rabie said: “The discounts could be applied within days after a ratification by Egyptian President Abdel Fattah al-Sisi.” The initiative follows a significant drop in canal revenue, which fell to $880.9 million in the fourth quarter from $2.40 billion the previous year, as reported by Egypt’s central bank. The decline is linked to attacks on Red Sea shipping by Yemen’s Houthis, who have targeted vessels in the region.
The Suez Canal, a critical source of foreign currency for Egypt, has faced challenges as Houthi attacks have disrupted maritime traffic. The group claims its actions aim to block cargo bound for Israel in solidarity with Palestinians in Gaza, though their attacks have also deterred other ships from using the canal. This has led to reduced traffic and increased costs for shipping companies.
Last week, Rabie held discussions with shipping agency representatives who urged the authority to introduce temporary incentives. These measures would help offset the elevated insurance costs for vessels navigating the Red Sea, which is now considered a high-risk area. The meeting came after an Oman-mediated ceasefire agreement between the United States and the Houthis. Under the deal, the U.S. agreed to halt airstrikes on Houthi targets in Yemen, and the Houthis committed to stopping attacks on U.S. ships. The agreement does not extend to ships linked to Israel.
The proposed discounts reflect Egypt’s efforts to restore the canal’s role as a key global trade route. By reducing transit fees, the authority hopes to encourage shipping companies to resume using the waterway, supporting Egypt’s economy and global maritime trade.
