Canal Rebate

The main idea behind granting a rebate is to prompt ship operators to direct their vessels to transit the Suez Canal instead of using another route, e.g. the Cape of Good Hope, which might seem less costly, yet more risky. If the Suez Canal Authority considers, through its own calculations, that the voyage round the cape will be more costly, then the SCA's rebate shall not be granted since ship owners will opt for using the less costly route. Acquiring SCA's rebate entails that the agency must submit a rebate request prior vessel's sailing from loading port or at least before passing the deviation point – the point where the vessel has to change its course either to the Suez Canal or to the Cape - by 48 hours. The rebate request form is appended hereunder:

Circular No 4/1998

On rebates offered to long haul trips transiting the Suez Canal

In order to minimize effort and correspondence for both the Suez Canal Authority (SCA) and clients requesting on normal Suez canal transit tolls the following procedures shall be implemented as of November 1.1998 :

1. On receiving a fax request for rebate covering all trip and vessel details as per the attached "Rebate Request Form" together with any information that may be deemed necessary by the client , SCA shall study the case and notify the client of the proposed rebate as soon as possible.
2. The client will notify SCA of his acceptance or his final counter proposal by fax.
3. SCA will restudy the case for the last time and either maintain its Previous rebate or submit the rock bottom rebate which will not Be subject to any further negotiation.
4. The applicant will fax his decision to SCA together with the ETA. SCA hopes that all its clients will follow the above mentioned procedures 

Information and documents Required for granting rebate

A fax to the attention of director of Planning &. Research Dept. before starting the voyage or at least before deviation point by 48 hours with the following data:

Rebate request form

AA- Vessel's Particulars:
Name – type - DWT- last transit – S.C.NET – beam – transit draft – speed – bunker consumption / price (F.O. & D.O.)

BB- Voyage Details:
Weather condition at S/N – port of origin / destination –Nature and quantity of cargo loaded if any – daily chart or ingrate - Bunkering ports – deviation point.

CC- Your detailed calculation of voyage costs
via each route (Cape / S Canal / Other alternative route) and proposed rebate from normal tools.

Our reply will be within 72 hours.

S.C. Tolls without any reduction to be submitted before transiting by your agent.

The granted rebate will be realized upon receiving the following documents:

1. Bill of lading and cargo manifest if any.
2. A statement signed by the master and owners / operators that the vessel made her voyage without any stoppage at intermediate port for cargo operations.
3. Certificates from port authorities of origin state: date of departure - Nature & quantity of cargo loaded (or in ballast) - sailing to.
4. Certificates from port authorities of destination state: coming from - Date of arrival – nature & quantity of cargo discharged (or in ballast).

These documents must be submitted after transit by 6 month maximum no reduction is to be enjoyed after this period .

The validity of reduction is 60 days from the first date of SCA response to the rebate request. However, when the 60 days are over no rebate is to be enjoyed. Therefore if this duration ( 60 days ) may be exceeded a new rebate request form shall be submitted to SCA to restudy the case provided that the request is received by SCA before the ship arrives to the deviation point.

Reminder with circular 4/98 

1. Please be informed that, it was noticed that some application for L.H. Rebate were submitted in the same day or after the day of deviation point.
2. In that case the rebate will not be calculated and if offered will be Canceled.
3. So please submit the application of the L.H. rebate before starting the voyage or at least before deviation point by 48 hours, according to our circular NO 4/98.