Egypt's recent announcement of hiking transit fees for vessels crossing the Suez Canal might spell an inflation storm on the horizon.

The Suez Canal Authority disclosed that fees for a spectrum of vessels will see hikes come January 15, 2024. This includes a 15% increase for liquid bulk carriers, among others, and a modest 5% hike for cargo ships and similar vessels. Notably, certain container ships, especially those connecting North-West Europe to the Far East, escape this price bump.

What's the implication? Carriers will likely offset this price surge onto consumers, thereby magnifying inflationary pressures.

Yet, the canal's unmatched economic feasibility keeps it in high demand. With 20,600 vessels documented in 2021, its significance in global trade is undeniable