Suez Canal offers 15% fee cut amid Houthi threat and US pullback
The Egyptian Suez Canal Authority is introducing a 15% discount on transit fees for large container ships starting May 15, to restore navigation on the route threatened by Houthi attacks. Meanwhile, the "New York Times" reported that the USA is withdrawing from the offensive against the rebels.
The Egyptian Suez Canal Authority (SCA) announced that from May 15, it is introducing a 15% discount on transit fees for large container ships. This decision aims to restore navigation on the route, which has been abandoned by many shipping companies due to attacks by Yemeni Houthi rebels.
The discounts will be in effect for 90 days and pertain to container ships with a net tonnage of at least 143,000 tonnes. The offer includes both ships carrying cargo and those heading to collect goods, i.e., empty ones. Osama Rabie, head of the Suez Canal Authority, confirmed this on Tuesday in Cairo.
Revenues from the Suez Canal fell to $880.9 million (CAD 1.2 trillion) in the fourth quarter of last year, a significant decline compared to $2.4 (CAD 3.3) billion the previous year. Many shipping companies have abandoned this shortest sea route connecting Asia and Europe in favour of a longer one around Africa, due to Houthi attacks in the Red Sea and the Bab Al-Mandab Strait.
Donald Trump lays down arms
Last week, the United States reached an agreement with the Houthis regarding a ceasefire. Washington agreed to stop bombing their positions in Yemen in exchange for halting attacks on American ships. However, this agreement does not include Israel.
President Donald Trump reportedly decided to end the US offensive against Yemeni Houthi rebels, which lasted over a month. As reported by the "New York Times," the campaign was not delivering the expected results, and its costs were significant. In the first month alone, over $1 (CAD 1.4) billion was spent on it.
Significant forces were involved in the operations against the Houthis, including two aircraft carrier groups, B-2 bombers, and Patriot and THAAD air defence systems. The rebels shot down seven MQ-9 drones, each costing about $30 (CAD 41.8) million. The US Navy also lost two F/A-18 Super Hornet fighters, which fell into the Red Sea.
From April 15 to May 5, over 1,100 attacks were carried out on the Houthis, killing hundreds of fighters, including several commanders. Nevertheless, the campaign did not achieve the intended effects.
