Renewal of rebate circular & new rebate for bulk carriers

24 Jun 2021 / Suez Canal, Egypt

The Suez Canal Authority has renewed its rebate circular for bulk carriers and also issued a new rebate for bulk carriers travelling from West Africa to the Far East.

Circular No. (3/2018) concerning the rebate granted to (Laden/Ballast) Dry Bulk Vessels operating between Americas’ Eastern ports and Asian ports, shall remain in force till 31 December 2021 after amending "Article One" of the circular to read as follows:

  1. Laden or Ballast Dry Bulk Vessels coming from (or heading to) the East Coast of North America (ports located at the North of Savannah port) and heading to (or coming from) the following areas:
    a) Ports West of Indian subcontinent starting from Karachi up to Kochi port; shall be granted a rebate of 15% of Suez Canal normal tolls.
    b) Kochi port and its Eastern ports up to Port Klang shall be granted a rebate of 45% of Suez Canal normal tolls.
    c) Port Klang port and it Eastern ports (including Far East area) shall be granted a rebate of 60% of Suez Canal normal tolls.

  2. Laden or Ballast Dry Bulk Vessels coming from (or heading to) Savannah port (Latitude 32° 6' 39" N) and its Southern Ports (including Ports of US Gulf, Mississippi River, Caribbean Sea and Latin America) and heading to (or coming from) the following areas:
    a) Ports West of Indian subcontinent starting from Karachi up to Kochi port; shall be granted a rebate of 35% of the Suez Canal normal tolls.
    b) Kochi port and its Eastern ports (including Far East area); shall be granted a rebate of 75% of Suez Canal normal tolls.

Further, Circular No.02/2021 advises that a new rebate has been issued for dry bulk carriers with bulk cargo, laden, or ballast, on voyages from West Africa to the Far East, valid until 31 December 2021.

Laden/ballast dry bulk vessels" operating between Mauritanian Ports (and its Southern Ports at West Africa) and ports at the Far East (starting from Port Klang and its Eastern ports) shall be granted a rebate of 75% from Suez Canal normal tolls.

Any operating company wishing to benefit from this circular must submit a request through its shipping agency before sailing from port of origin. The request must state: vessel's particulars, origin port, sailing date, destination port, ETA to Suez Canal, vessel's condition (loaded/ballast) and the type & quantity of cargo.

The vessel must not call any intermediate ports during its voyage between origin port and destination port for commercial purposes. In case the vessel called any intermediate ports for non-commercial purposes a certificate issued by the port authority or other competent authorities will be required stating the reason of calling.

Full normal Suez Canal transit tolls to be paid upon transit and the rebate amount will be refunded after submitting all the required documents within one calendar year starts the following day of transit. Where the required documents (related to the vessel's voyage) should be submitted as one package.

Required documents to refund the rebate amount:
a) "Origin port" certificate from the last port that the vessel sailed from stating the departure date, quantity of cargo in metric tons and type of cargo on departure to be duly signed & stamped by the port authority or other competent authorities.
b) "Destination port" certificate from the first port of arrival stating the arrival date, quantity of cargo in metric tons and type of cargo on arrival duly signed and stamped by the port authority or other competent authorities.
c) "Principals Claim" requesting to refund the rebate amount stating the circular number, port of origin and sailing date, destination port and arrival date, transit date, claimed rebate percentage, the name of the transit agent to whom the rebate amount should be refunded and a clear disclaimer that the vessel had not called any intermediate ports for commercial purposes.

Failing to submit all the required documents in due time or calling any intermediate ports for commercial purposes or breaching any of the pre-set circular conditions will lead to the cancellation of the rebate previously granted to the vessel.

This circular is applicable to vessels sailing from port of origin from 1 July 2021 until 31 December 2021.

For information about operations in the Suez Canal, contact GAC Egypt at [email protected]

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