Red Sea Situation Suitable for Gradual Return of Ships to Suez Canal, Says SCA Chairman

Osama Rabie, Chairman of the Suez Canal Authority, participated on Saturday in a major symposium organized by the Egyptian Maritime Association under the title: "Challenges Facing the Suez Canal in Light of Regional and International Changes."

In his opening remarks, Rabie noted that the escalating security tensions in the Red Sea and Bab el-Mandeb Strait have significantly impacted shipping traffic through the Suez Canal, forcing many shipping lines to change their routes and resort to the Cape of Good Hope route. This has led to increased travel times and higher operating costs, which has negatively impacted global inflation rates.

The chairman of the authority explained that the Suez Canal has adopted a flexible approach to dealing with the repercussions of the crisis, through direct communication with international shipping companies to study the possibility of modifying their sailing schedules and coordinating the gradual return to transiting the Canal. He noted that the security situation has improved, allowing for the gradual resumption of shipping traffic through the Canal.

He also added that the Authority has responded to requests from some shipping lines by offering incentives and discounts of up to 15% for vessels with a capacity exceeding 130,000 tons, for a period of three months. This step aims to ease their financial burdens and encourage them to re-include the Suez Canal in their shipping routes.

He concluded by emphasizing that the current crisis has proven the importance of the Suez Canal as an indispensable shipping route, given the time and cost savings it provides, as well as the comprehensive maritime and logistical services it provides—advantages that the alternative route via the Cape of Good Hope lacks.

In his speech, Major General Samir Farag emphasized that the Egyptian state's neutral stance regarding the situation in the Red Sea has strengthened confidence in the Suez Canal as a safe and neutral international passageway, contributing to the stability of global supply chains and trade. He emphasized that the Canal will remain the most efficient and feasible shipping route despite attempts to develop alternative routes.

On his part, Khaled Abu Bakr, Advisor to the Chairman of the Authority for Legal and International Affairs emphasized that the Suez Canal is subject to international agreements that render it neutral regarding political disputes and conflicts, which strengthens its position as an international shipping lane that enjoys the trust of customers and international partners.