In order to encourage more LNG tankers to transit the Suez Canal, the Suez Canal Authority has increased the allowed level of cargo residues on LNG tankers.
“The Suez Canal Authority (SCA) always pays attention to its users’ best interest, and has recently taken more steps towards becoming more competitive when compared to other routes,” the canal authority said in a customer advisory.
Hence, as of July 1, the allowed residues of LNG cargo shall be raised to 5 percent of the vessel’s summer deadweight ton instead of 2 percent to grant the LNG vessels the privilege of ballast vessels dues rate, the canal authority says.
“LNG vessels passing Suez Canal carrying cargo till 5% of its summer deadweight ton will be treated as ballast vessel rather than loaded one saving 15% of Suez Canal tolls,” the authority added.
The announcement comes as the Suez Canal reports its highest annual revenue reaching USD 5.85 billion, an increase of 11.5 percent from last year.
According to the Chairman of the Suez Canal Authority, Mohab Mamesh, 17,845 vessels crossed the canal in 2017/2018, up by 4.9 percent when compared to the previous year.
Total cargoes transferred through the canal amounted to 97.6 million tons, increasing by 9.8 percent year-on-year.