Ocean Freight Surcharges

SCS Surcharge (Suez Canal Surcharge)

SCS (Suez Canal Surcharge): Charge for vessels transiting the Suez Canal. When it applies, typical range, and who pays under common Incoterms.

Code
SCS
Name
Suez Canal Surcharge
Typical range
$50-$200 per TEU
Routes
Asia-Europe, Asia-Mediterranean, Asia-US East Coast (via Suez)

Suez Canal Surcharge (SCS) is a fee charged by shipping lines to recover the cost of Suez Canal transit tolls paid to the Suez Canal Authority (SCA). The canal connects the Mediterranean Sea to the Red Sea, providing the shortest sea route between Asia/East Africa and Europe/East Coast Americas.

Suez Canal facts: • Opened in 1869, significantly expanded in 2015 • Handles approximately 12-15% of global trade • Transit takes 11-16 hours • Tolls are based on vessel size, cargo type, and laden status

Canal tolls are substantial - large container vessels can pay $500,000 or more per transit. Shipping lines pass these costs to shippers through SCS, typically calculated per container.

The Suez Canal route is crucial for: • Asia to Europe trade • Asia to East Coast US (via Suez + Atlantic) • Middle East to Europe trade • East Africa to Europe trade

When Suez Canal tolls increase (as they did in 2023), SCS rises accordingly. The 2021 Ever Given blockage highlighted the canal's importance and vulnerability.

When SCS applies

Applied on all shipments using routes that transit the Suez Canal.

Who pays SCS under common Incoterms

  • FOB: buyer
  • CIF: seller
  • EXW: buyer
  • DAP: seller

How to minimize SCS

  • Consider Cape of Good Hope routing for non-urgent cargo
  • Negotiate SCS caps for high-volume shipments
  • Use carriers with larger vessels (better economies of scale)
  • Accept longer transit times to avoid Suez routing

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Frequently asked questions

What is the SCS surcharge?

SCS stands for Suez Canal Surcharge. Charge for vessels transiting the Suez Canal.

When does SCS apply?

Applied on all shipments using routes that transit the Suez Canal.

How much is SCS?

The typical range is $50-$200 per TEU. Confirm the current amount with your carrier or forwarder.