• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

Suez Canal To Hike Tolls On Crude Tankers By 5%

Tyler Durden's picture


The raging second Egyptian Spring isn't quite the webcast ratings bonanza it was when it first struck in 2011, which makes sense as the current Muslim Brotherhood government has the full backing of the US and thus it is in "everyone's best interest" to not follow how close to a counterrevolution the nation once again is. And while for the time being the country's most valuable asset, the Egypt-controlled Suez Canal Authority is in "stable" hands, that does not mean that the government, which today announced its foreign reserves had dipped precariously to only $13.6 billion, can't enforce inflation where everyone else says deflation reigns. As a result, as of May 1, the tolls for any crude oil and other liquid tankers will rise by 5%, while tolls for other commodities will increase by 2-3%. Expect said additional infrastructure costs to be promptly passed on to end consumers around the globe.

From Seanews:

THE Suez Canal Authority has announced that tolls for the waterway will be increased from May 1.


For general cargo, ro/ro and passenger vessels the increase will be three per cent. Containerships and vehicle carriers will have the least increase at two per cent.


According to a detailed new tariff structure the tolls will increase by five per cent for crude oil tankers, petroleum product tankers, chemical carriers and other liquid bulk carriers, LPG, LNG and dry bulk carriers, said a port news report from GAC.

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Tue, 02/05/2013 - 14:00 | 3216865 CPL
CPL's picture

So WTI is really over 100 now?  Awesome.

Nothing but good things can happen now.

Tue, 02/05/2013 - 14:49 | 3217052 SilverIsKing
SilverIsKing's picture

Do they accept EZ-Pass at the Suez?  If so, no one will never notice the rate hike.

Tue, 02/05/2013 - 14:50 | 3217056 redpill
redpill's picture

No worries, we'll just tell the oil companies they can't raise prices.  What could go wrong?

Tue, 02/05/2013 - 17:03 | 3217573 Carl Spackler
Carl Spackler's picture

That is the ticket, SilverisKing !  Force the Saudis to use their credit card to buy credits on EZ-Pass.

Actually, as an American I see this as a kick the Euro sissies while they are down maneuver...Don Quixote, Frenchy, the Spaghetti Republic, and Zorba the Greek.  In other words, not my problem

Our oil comes from the Gulf of Mexico, The North Slope (of the Brooks Range), Canada, Mexico, and Venezuela.





Tue, 02/05/2013 - 16:49 | 3217503 ejmoosa
ejmoosa's picture

If I were getting paid billions in dollars worth less today than yesterday, I'd sure as hell demand more of them for as long as I could.  And swap them for real assets as fast as I could.

Tue, 02/05/2013 - 14:00 | 3216866 The Gooch
The Gooch's picture

Gotta pay for those F-16's somehow! Oh. wait...

Tue, 02/05/2013 - 14:33 | 3216980 Renewable Life
Renewable Life's picture

5%..........that's a fucking deal!  Uncle Ben has increased the cost of living thru exported inflation in the Middle East by 50% in the last 4 years!!  Europe is fucking lucky the "toll" didn't go up 100%!!!

Tue, 02/05/2013 - 14:00 | 3216868 Neethgie
Neethgie's picture

Trouble in the suez.....

Tue, 02/05/2013 - 14:03 | 3216871 Cognitive Dissonance
Cognitive Dissonance's picture

I thought Egypt was fixed?

<"Will someone please slow the teleprompter down so I can read the damn thing." - Obama>

Tue, 02/05/2013 - 14:03 | 3216878 Dr. Richard Head
Dr. Richard Head's picture

Ohhhhh it was fixed alright.  Just not for the common folk. 

Tue, 02/05/2013 - 16:10 | 3217363 Ratscam
Ratscam's picture

The Rothschilds fixed the financing of the constructino of the Suez canal.

Tue, 02/05/2013 - 14:11 | 3216900 centerline
centerline's picture

Please define the word "fixed."  Maybe use it in a sentence so that I can get a "feel" for the context here.  lol.

Tue, 02/05/2013 - 14:16 | 3216911 Cognitive Dissonance
Cognitive Dissonance's picture

I had a vasectomy last year, only my wife called it a lobotomy. That fixed me up real good.

Tue, 02/05/2013 - 14:03 | 3216874 derek_vineyard
derek_vineyard's picture

hampton pearson = everything that is wrong with this country

Tue, 02/05/2013 - 14:04 | 3216881 Joe Davola
Joe Davola's picture

Good thing they don't use gasoline in Europe.

Tue, 02/05/2013 - 14:16 | 3216915 spankfish
spankfish's picture

That'll teach them pesky Germans to want their gold back.

Tue, 02/05/2013 - 14:06 | 3216883 Dr. Engali
Dr. Engali's picture

I'm reliving the 70s except without the long hair and bell bottoms. God that was an awful time...all the way around. Good music though.

Tue, 02/05/2013 - 14:26 | 3216952 francis_sawyer
francis_sawyer's picture

So who did you like best? Captain & Tenille or Donny & Marie?... Are you a little bit Country? Or a little bit Rock & Roll?...

Tue, 02/05/2013 - 14:34 | 3216988 The Gooch
The Gooch's picture

The Carpenters, man.

Tue, 02/05/2013 - 14:41 | 3217012 unrulian
unrulian's picture

what are you guys? a hundred?

Tue, 02/05/2013 - 14:44 | 3217017 francis_sawyer
francis_sawyer's picture

For every Eagles & Led Zeppelin, there's a Terry Jacks & Helen Reddy... Depends whose time capsule you open...

Tue, 02/05/2013 - 14:50 | 3217062 SilverIsKing
SilverIsKing's picture

Sonny & Cher for me

Tue, 02/05/2013 - 14:54 | 3217073 Whiteshadowmovement
Whiteshadowmovement's picture

Yeah but I think you have to admit the musical talent back then was still great on average. Back then (and I never spent a single day in the 70s btw), putting together great melodies and rhythmical harmony was still important to music- and I think I can make this case acrros genres from Creedence to Curtis Mayfield. I find melody is sort of lacking from modern music. Thats because beats are now what makes a good song. And a beat is all about getting one little piece of music to sound amazing and repeating it in a simple arrangement, while melody is about an incredibly complex arrangement of simple sounds.

Tue, 02/05/2013 - 14:57 | 3217087 francis_sawyer
francis_sawyer's picture

Most of the 'good songs' nowadays are DJ Mashups of 70's & 80's music...

Tue, 02/05/2013 - 15:01 | 3217100 Whiteshadowmovement
Whiteshadowmovement's picture

How true when you think about it- there are far too many examples to list...


Tue, 02/05/2013 - 19:29 | 3218123 ersatzteil
ersatzteil's picture

Some dedicated artists, too - nothing sells records like a heroin overdose!

Tue, 02/05/2013 - 19:51 | 3218197 MisterMousePotato
MisterMousePotato's picture

Did you know that when Apple Records signed James Taylor, they flew both him and his father to London? His father to sign the contract because JT was still a minor.

Tue, 02/05/2013 - 14:40 | 3217008 Optimusprime
Optimusprime's picture

Cat Stevens

Tue, 02/05/2013 - 14:45 | 3217031 Bam_Man
Bam_Man's picture

Al Stewart.

Tue, 02/05/2013 - 15:09 | 3217133 francis_sawyer
francis_sawyer's picture

CW McCall, Tiny Tim, The Hillside Singers, Buffy Saint-Marie, Leif Garrett, David Cassidy, Shaun Cassidy, Suzy Quattro, Skylark, Jigsaw, Black Oak Arkansas, William DeVaughn, Pilot, Elvin Bishop, Rick Dees, Barry DeVorzon & Perry Botkin, Jr., David Soul, Debby Boone, Randy Van Warmer, David Naughton...

Tue, 02/05/2013 - 17:07 | 3217597 espirit
espirit's picture

You're young adulthood was definitely warped!

Tue, 02/05/2013 - 17:39 | 3217707 francis_sawyer
francis_sawyer's picture

Eh Breaker-one-nine this here's the DISCO DUCK, you got copy on me Big Ben 'cmon...


You couldn't make this shit up if you tried... MUPPETS... That's all I have to say...

Tue, 02/05/2013 - 14:31 | 3216976 Whiteshadowmovement
Whiteshadowmovement's picture

Great music doc, I really envy you guys for that, what I wouldnt give to have seen some of these guys that died before I was born.

Have you ever seen the film "Withnail and I"? Its an absolute classic. Much of it centers around how the 60's were the last great burst of human creativity.

Epic line which almost sounds totally fresh:

"If you're hanging on to a rising balloon, you're presented with a difficult decision — let go before it's too late or hang on and keep getting higher, posing the question: how long can you keep a grip on the rope? They're selling hippie wigs in Woolworth's, man. The greatest decade in the history of mankind is over. And as Presuming Ed here has so consistently pointed out, we have failed to paint it black."


Tue, 02/05/2013 - 14:07 | 3216886 waterwitch
waterwitch's picture

Can Panama Canal be far behind?

Tue, 02/05/2013 - 15:53 | 3216965 ParkAveFlasher
ParkAveFlasher's picture

The Panama Canal is getting widened / doubled up.  2015 is the expected finish date and the US East Coast is dredging its deep water ports to accomodate ever larger vessels.

Not being reported at all.  It's a game changer.

Here is one analysis I got from a google search,


Nutshell: bye bye California, Seattle, flyover train hubs, hello Gulf, Charleston, Norfolk, Baltimore, Elizabeth, ....

[EDIT] The Army Corps of Engineers has the best analysis. Page 49 shows who is ready and who isn't.


Tue, 02/05/2013 - 21:10 | 3218395 Sizzurp
Sizzurp's picture

I hear the longshoremen on the west coast are some of the most highly compensated workers in the world.  Probably right up there with the skycaps who pull down 100k or more in cash tips every year.  Not a bad gig.

Tue, 02/05/2013 - 14:09 | 3216891 LongSoupLine
LongSoupLine's picture

Just more of Bernanke's fucking shit stains bleeding throught the global pants of consumers.


Fuck you Bernanke you fucking asshole

Tue, 02/05/2013 - 14:34 | 3216986 Not Too Important
Not Too Important's picture

That was the most disgusting - and hilarious - comment I have ever read on ZeroHedge.

Bravo, good sir!

Tue, 02/05/2013 - 14:18 | 3216927 No Euros please...
No Euros please we&#039;re British's picture

So that would be 2% in statistical terminology? Doesn't seem so bad.

Tue, 02/05/2013 - 14:19 | 3216934 shovelhead
shovelhead's picture

5%... no big deal.

Word has it that Mohammed is cutting back Jihad virgins to six each.

Times are getting tough in Islamoville.

Tue, 02/05/2013 - 14:21 | 3216938 Glass Seagull
Glass Seagull's picture



1. Shut down Egypt's SWIFT account

2. Accelerate the EGP decline

3. Release honey badgers in Cairo

4. Renegotiate a toll repeal in one month

Tue, 02/05/2013 - 14:25 | 3216953 Börjesson
Börjesson's picture

Good! Anything that makes outsourcing production to China less profitable is a step in the right direction.

Tue, 02/05/2013 - 14:44 | 3217021 Bam_Man
Bam_Man's picture

It's Transit-ory.

Tue, 02/05/2013 - 14:49 | 3217053 yogibear
yogibear's picture

Then we have North Korea's latest.....



North Korea video shows New York in ruins after missile attack

North Korea, already gearing up for yet another nuclear test, has posted a bizarre online video depicting New York under an apparent missile attack with "We Are the World" serving as a soundtrack.

The three-minute video posted on YouTube on Saturday was released by Uriminzokkiri, which distributes news and propaganda from North Korea’s state-run media. It features a young man in a dream sequence in which he sees himself aboard a North Korean space shuttle launched into orbit by the same type of rocket Pyongyang successfully launched in December. A densely populated city, which is shrouded in a U.S. flag, is then depicted to the tune of “We Are the World,” the charity single recorded in 1985.

Tue, 02/05/2013 - 14:56 | 3217082 forwardho
forwardho's picture

The "We are the world" background track is very creepy.

Tue, 02/05/2013 - 14:57 | 3217085 spankfish
spankfish's picture

They are still pissed off over the Onion and the Kim Jong-Un sexiest man story.

Tue, 02/05/2013 - 15:07 | 3217125 Frank N. Beans
Frank N. Beans's picture

what they need to do is drain the suez canal and pick up all the gold that's fallen overboard over the (last 3000) years.

Tue, 02/05/2013 - 15:20 | 3217164 ivana
ivana's picture

in case of tension escalation around suez - that would instantly send tanker shares to heaven and EU to hell

Tue, 02/05/2013 - 15:33 | 3217199 Albertarocks
Albertarocks's picture

Between May and December of '08 the Baltic Dry Index fell 94.4%.  It has never recovered.  So I'm guessing this 5% hike in tolls ain't exactly what the world's shippers need right about now.  If you'd care to see some stunning charts on what that 94% decline looks like, please feel free to hit the link.  It's my own blog, so if you don't think I should post a link to an article at my own joint, please forgive me and don't hit it.  Some amazing charts though.


Tue, 02/05/2013 - 17:56 | 3217787 Argent
Argent's picture

Firstly, 'shippers' dont give a shit about suez canal tolls as this is passed onto the charterer (the guy who owns the cargo).

Next, your blog is full of shit.  The BDI does not cover automobiles, textiles, electronic goods, furniture and of course goats.  Furthermore, the crash in dry freight is supply driven...way too many new ships delivered.  We have actually seen an increase in seaborne trade (mainly focussed on China).  There is no correlations to equities anymore.

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