•Egypt’s Suez Canal, a key source of hard currency for the cash-strapped country, saw transit volumes and revenues slide in the first quarter 2013 compared to a bumper 2012. First quarter revenues were the worst since the second quarter of 2010. For March takings were $398.5m (see graph). Revenues were down 8% on the previous quarter, whilst the number of vessels fell by 7%. The number of oil tankers transiting the canal in the key northbound direction also fell sharply during the first quarter, although volumes remain well above year-ago levels (see table).
•Egypt is raising tolls by around 5% (4.8% for crude and LNG carriers, 4.7% for LPG and petroleum products) from 1 May (MEES, 22 February). There are worries that this will tip the economics in favor of the longer alternate route via South Africa for shippers of non-time sensitive cargoes, although rising fuel costs have sharply tilted the economics in favor of the canal in recent years. Recent instability in several of the cities on the Suez Canal – in particular Port Said (MEES, 8 February) – is another factor that could potentially hit transit. However so far there has been no significant disruption to canal traffic and, as far as MEES is aware fears of instability have not led any shippers to turn to other routes. (CONTINUED - 286 WORDS)
