How much money can you save on your vessel's Canal tolls?
There are standard percentages for the fixed destinations.
The percentages vary for the generic Long Haul 4/2013 for all types of vessels/cargoes/voyages.
How does the variable Suez Canal rebate system work?
The percentage is calculated on a case-by-case basis depending on type of voyage, cargo, vessel size, port of origin and port of destination, among other variables.
Rebates are also subject to market conditions such as freight rates, hire rates, commodity and bunker prices.
While applying for SC rebate under Long Haul circular 4/2013 conditions, main restrictions prior transit are:
1.- apply at least 48 hours prior sailing from last origin cargo port, for application to be valid
2.- upon receipt rebate offer from Messrs SCA to confirm acceptance within 72 hours
3.- ship must transit within 70 days from the time Messrs SCA replied offering rebate
What other factors does the SCA look at when reviewing applications?
·Current time charter rates
·SDR rate (Special Drawing Rights provided by the International Monetary Fund)
·Bunker prices
·Weather forecast
·Worldscale (for tankers)
·BDI (for bulkers)
·Speed and fuel consumption
·Freight rates
·Anti-piracy costs
-ETC factors
How does the fixed Suez Canal rebate system work?
In order to prepare application for the voyage, we need to receive the information minimum one day prior vessel's sailing from port of origin berth and we have to apply to Messrs SCA at the latest prior vessel's sailing from port of origin berth for fixed rebate circulars.
For Long Haul rebate applications, must submit application to SCA at least 48 hrs prior vessel's sailing berth to be valid.
Is it possible to apply for multiple destinations?
If the port of destination is not standard, it's possible to apply for multiple destinations (as per our expertise; client will receive a response for 4 destinations).
What happens after the canal transit is completed?
On completion of the voyage should be collected and submitted to SCA various declarations issued by Master,
operators and customs or an approved by SCA port authority at ports of origin /destination/owners matters intermediary ports, proving that the voyage performed as initially declared.
The quantities of cargo loaded and discharged must be identical (as per bill of lading) to avoid suspicions of SCA that ship called at an intermediate port to operate cargo (load/discharge).
Caution: eventual call at an intermediate port to effect cargo operation is reason for cancellation of discount offered.
The validity of the documents: You have to submit all the documents within one year; which starts the following day of transit.
Failing to submit all the required documents in due time or breaching any of the circular conditions will lead to the cancellation of the rebate previously granted to the vessel
What type of documents are required by SCA for releasing the rebate?
Cargo documents: Bill of lading and cargo manifest (if any), Stowage Plan, Mate's Receipts.
Master's declaration to SCA.
Signed and stamped attested declaration from one of SCA approved Authorities/Parties of the port of origin stating among other details vessel’s name, date of arrival, quantity and type of cargo on arrival / departure, date of sailing and port of intended destination.
Signed and stamped attested declarations from from one of SCA approved Authorities/Parties at the port of destination stating among other details vessel’s name, date of arrival, port of origin, quantity and type of cargo on arrival.
A Claim statement signed by Owner / Operator confirming that vessel made her voyage without calling any intermediate port for cargo operations and claiming the rebated amount refund.
A signed and stamped attested declaration from one of SCA approved Authorities/Parties from any intermediary port of call during the voyage for any non cargo-ops stoppage such as the purpose of bunkering, crew changes, supplies, emergency, etc.
Main Conditions of applying the Circular
1) Any operating company wishing to benefit from SCA rebate circulars must submit a request through its shipping agency before sailing from the origin port berth (or 48 hrs prior sailing from port of origin berth for Long Haul 4/2013). The request must mainly state: vessel’s particulars, origin port and destination port, ETA to the Suez Canal and vessel’s condition.
2) The vessel must not call any intermediate ports during its voyage between origin port and destination port for commercial purposes. In case the vessel called any intermediate ports for none commercial purposes a certificate issued by the port authority or other competent authorities will be required stating the reason of calling.
3) Full normal Suez Canal transit tolls to be paid upon transit and the rebate amount will be refunded after submitting all the required documents within one calendar year starting the following day of transit.
4) Main Required documents to refund the rebate amount:
- a) “Origin port” certificate from the last port that the vessel sailed from stating the departure date, quantity of cargo in metric tons and type of cargo on departure duly signed & stamped by the port authority or other competent authorities.
- b) “Destination port” certificate from the first port of arrival stating the arrival date, quantity of cargo in metric tons and type of cargo on arrival duly signed and stamped by the port authority or other competent authorities.
- c) “Principals Claim” requesting to refund the rebate amount stating the circular number, port of origin and sailing date, destination port and arrival date, transit date and a clear disclaimer that the vessel has not called any intermediate ports for commercial purposes.
- d) a declaration from any intermediary port of stoppage advising reason of stoppage (bunkering, crew changes, supplies, etc) and specifying that no cargo operation took place
5) Failing to submit all the required documents in due time (within one year starting from the next day of SC transit) or breaching any of the circular conditions will lead to the cancellation of the rebate previously granted to the vessel.
What type of information does your ships agent require to complete rebate applications?
·Vessel Technical Details such as IMO, Vessel name, DWT, Last transit date , SCNT, Beam, Vessel speed, Bunker consumption and Bunker unit price, if scrubber fitted or not, estimated Suez Canal transit draft.
·Voyage Details such as Last port of origin / First port of destination, Cargo type /condition and Quantity, Daily running expenses or daily chartering hire (if voyage or T/C) , Bunkering ports during voyage and Weather conditions at loading port, anti-piracy charges/expenses .
If a vessel is qualified for tolls reduction; still is pre-payment required?
Full normal Suez Canal transit tolls to be paid upon transit and the rebate amount will be refunded after submitting all the required documents in accordance to SCA requirements
When SCA responds about the submitted rebate file?
Our experience dictates that SCA usually responds withing 2 months from declaration's submission date. If no further clarification is requested, the funds are being eventually released.
How do I actively keep track of the latest rebate options for my vessel?
In World Marine, we have extensive experience in handling and submitting rebate applications to SCA on behalf of our principals – we like to keep our customers updated with the SCA “Navigation Circulars” that are periodically issued.
How do I calculate the Suez canal transit toll fees for my vessel?
You should send any query to athens@worldmarine.gr for proper calculation or free feel to contact us at +302108986334.