The Suez Canal Authority (SCA) has announced increased incentives for containerships passing through the channel to block container vessels from sailing through the Cape of Good Hope.

In a circular, SCA said the low fuel prices are tempting container ships to use Cape of Good Hope — a longer but cheaper passageway — driven by low fuel prices.

Some container lines are opting to make the longer sailing on the backhaul to Asia through the Cape of Good Hope with fuel cost deemed lower than the toll payments to use the Suez Canal.

“Taking into consideration the recent situation of the shipping market and global economy, and in line with The Suez Canal Authority (SCA) flexible marketing policies which consider the mutual benefits of SCA and its customers, the SCA has decided to increase the incentives for container ships passing through the Suez Canal,” SCA said.

IT said container vessels coming from Northwest Europe and Tangier via the Suez Canal to Asia will be given 17% rebate on toll payments from 1 May to 30 June 2020.

Container ships from the Port of Norfolk and northwards on the east coast of North America and headed to Port Klang, Malaysia eastwards, via the Suez Canal also be awarded a 60% rebate during the same time.

Meanwhile, those ships from ports south of Norfolk headed to Port Klang will be eligible to receive a 75% rebate and those bound for ports between Colombo and Port Klang will get 65%.