Current Affairs - Business - Discussion

The Suez Canal Authority announced a 15% discount on transit fees for large cargo vessels starting May 15, 2025, to revive maritime traffic affected by the Red Sea security crisis. This move follows a tentative ceasefire between the US and Iran-backed Houthi rebels, who had disrupted shipping by targeting commercial vessels. The Suez Canal is a vital global trade artery, and the discount aims to encourage shipping lines, especially container ships, to return after many rerouted via the Cape of Good Hope. The canal’s revenue dropped significantly from $10.3 billion in 2023 to $4 billion in 2024, making this incentive critical for economic recovery.