Leth >> Services >> Suez Canal Rebates

The Rebate System

In April 1987, Suez Canal Authority (SCA) introduced the long-haul rebate system as a marketing policy to attract new customers and encourage more vessels to use the Suez Canal. A percentage reduction on the vessel’s canal tolls is made depending on type of voyage (ballast/laden), cargo type, vessel size, speed, consumption, port of loading and destination. Calculations are also subject to current market conditions such as bunker prices, freight- and hire rates and piracy costs.

The rebate is granted based on an application submitted to SCA for the voyage between vessel’s last load port and first discharge port. Ballast transits are also eligible for rebates. The application is a comparison of the voyage calculations based on a Suez Canal transit versus alternative routes. SCA has also introduced several fixed rebates (fixed percentage rebate off canal tolls) for crude oil carriers, LNG tankers, LPG tankers, containerships, vehicle carriers and dry bulk vessels.

Here you can find our fixed rebate overview along with world maps.

Once the rebate is granted, a strict set of certificates must be submitted to SCAs Rebate Department. Canal tolls are paid in full upon transit and the rebate will be released after the certificates are submitted in accordance with deadlines and that the certificates meet the requirements.

Find the Online Rebate Application here

Leth and the Rebate Administration

At Leth, we have established a dedicated department working solely with rebate administration on behalf of clients. Based on long experience in the field, we have developed a solid system to make sure rebates are released within market leading timeframes, which is crucial for not only our client’s cash-flow, but means we save valuable time and energy for our clients as well. The documentation required by the SCA to release the rebate can be difficult and time-consuming to collect, but we have specialized in collecting these types of certificates. We will coordinate with port agents and the relevant authorities for the correct type of certificate, screen the certificate to make sure it meets requirements and ensure the certificate is shipped to our Egypt office.

The rebate process consists of six main steps, briefly outlined below.
To understand the rebate procedures and see which rules apply, please download our brochure here.