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Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Int'l Shipping Lines Confirm Returning to Suez Canal as Soon as Red Sea Crisis Ends


Sun 03 Mar 2024 | 10:32 PM
Taarek Refaat

Osama Rabie, Chairman of the Suez Canal Authority said that the international shipping lines confirmed their readiness to return to the canal as soon as the Bab al-Mandab crisis ends.

This came during the team’s participation, Sunday, in the opening of the activities of the thirteenth annual International Maritime Transport and Logistics Conference (MARLOG).

In his speech, Rabie touched on the security and geopolitical tensions in the Red Sea and Bab al-Mandeb region that have erupted since last November, and which continue to cast a shadow on the global maritime scene, as freight loads for ships heading to Red Sea ports rose to $6,800 per container, compared to about $750 per container before the crisis. In addition to the high costs of ship fuel and the high cost of insurance, sometimes reaching 10 times the pre-crisis insurance value.

He added that these meetings witnessed the discussion of ways to deal with the disruption of global supply chains in light of the increase in the duration of the journey it takes to circumnavigate Africa using the Cape of Good Hope route and the lack of ports and navigational and logistical services along this route, which enhances the strategic importance that the Suez Canal enjoys.

Chairman of the Suez Canal Authority stressed that over the past few years, an unprecedented development boom has been achieved in navigational canal development projects, the most prominent of which is the project to develop the southern sector of the canal, which contributes to increasing the navigational safety factor by 28%, in parallel with work on implementing a plan to build and develop 3 yacht marinas in the three canal cities.

He explained that the Suez Canal succeeded in reducing 55 million tons of carbon emissions and reducing fuel consumption by 17 million tons during the year 2023.

The chairman of the authority added that the Suez Canal was at the same time working to enhance the use of clean energy in the authority’s various facilities and units, in addition to starting a new activity to collect waste from ships crossing the Suez Canal in partnership with the Greek "Anti Pollution" Company, so that the canal becomes a role model for sustainable, environmentally friendly shipping lanes.

Rabie pointed out that the Suez Canal continues its efforts to support its customers during times of crises, emphasizing the strategic relationship between them, by adopting a package of marine mechanisms and services that will limit the repercussions of the situation.

At the end of his speech, the Chairman of the Authority invited all investors and economic, industrial and maritime entities to enter into investment partnerships with the Suez Canal and its companies in all the promising opportunities it presents in the areas of passenger terminals for cruise ships, sustainable arsenals, and building green marine units.