Average Freight Rates For Egyptian Ports Announced By Alexandria Chamber Of Shipping

Shipping Arabia, September 29, 2024 — The Alexandria Chamber of Shipping has officially released the average maritime freight rates for containers arriving at Egyptian ports for October, November, and December.

This announcement follows a crucial meeting with a committee established by the Egyptian Tax Authority under Decision No. 373 of 2020, aimed at reviewing the Chamber’s proposed freight rates for container shipments from various global regions.

The newly announced rates are part of a cooperation protocol involving the Customs Authority, the Tax Authority, and the Alexandria Chamber of Shipping.

This protocol focuses on the implementation of VAT Law No. 67 of 2016, specifically regarding the application of VAT on maritime freight services for exempt goods, including machinery, equipment, and other items listed in the law’s annex.

The Chamber has detailed the following rates:

• For shipments from South and East Asia, the rates are set at $4,500 for a 20-foot container and $5,600 for a 40-foot container to Alexandria port. Refrigerated containers incur a slight increase, while the rates are slightly lower for Damietta and Port Said ports.
• From Southeast Asia, which includes major exporters like China, Japan, and Korea, the rates are $4,000 for a 20-foot container and $5,200 for a 40-foot container to Alexandria, with similar rates applicable to other regional ports.
• Shipments from Gulf countries, such as Jebel Ali and Dammam, are significantly lower, at $1,600 for a 20-foot container and $2,000 for a 40-foot container to Alexandria, reflecting shorter transit distances and strategic trade relations.
• For North European routes, which include major trading nations like the Netherlands, the UK, and Germany, the rates are set at €1,000 for a 20-foot container and €1,400 for a 40-foot container to Alexandria, with higher costs for refrigerated containers. Rates are slightly lower for other Egyptian ports like Damietta and Port Said.

Mohamed Moselhy, Chairman of the Alexandria Chamber of Shipping, highlighted the significance of these rates in supporting the enforcement of VAT laws and establishing a clear framework for the application of VAT on maritime freight services.

This initiative, supported by Reda Abdel Kader, Head of the Tax Authority, reinforces the principles of tax fairness and the Chamber’s commitment to promoting tax justice within Egypt’s maritime freight sector.