Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Shipping Lines Request Incentives for Crossing Suez Canal in light of Red Sea Unrest

Sun 28 Jan 2024 | 09:35 PM
Taarek Refaat

Osama Rabie, Chairman of the Suez Canal Authority, met Sunday, with a group of representatives of shipping lines and agencies to discuss the repercussions of the current crises in the Red Sea and Bab al-Mandab, and the extent of their impact on the maritime transport.

Rabie stressed the importance of the meeting, which serves as an extended and continuous platform for dialogue with all of the canal’s partners, including shipping agencies and lines, in light of the Suez Canal Authority’s keenness to open direct channels of communication with all its customers to consult on the current situation, explore their needs, and discuss the proposed recommendations to enhance cooperation with the Suez Canal.

The Chairman of the Authority explained that the Suez Canal has the interests of its customers in mind and is working to reduce the impact of the current conditions on the global trade movement passing through the canal by providing a package of navigational and maritime services that suit the needs of passing ships in normal and emergency circumstances, which extends to include fuel refueling services and the marine ambulance service as well as Marine rescue services, pollution control, ship repair and maintenance services at the Authority’s arsenals, and others.

He stressed that the Suez Canal is an integral part of the global trade movement, as 12% of global trade volume and 25% of global container trade pass through it, noting that the current conditions impose more challenges on global supply chains in light of the increased journey times and rising expenses. The operational operation of ships, the increase in freight loads and insurance expenses, which has a direct impact on global supply chains and the impact of the consumer on the rise in commodity prices and the delay in their arrival.

On his part, Hatem Al-Qadi, Chairman of the Board of Directors of the Kadmar Agency indicated during his participation in the meeting via video conference technology that the current crisis imposes many challenges on Egyptian exports and imports in light of the increase in global shipping traffic, calling on the Authority to study the possibility of granting more privileges to cruise ships and operating cargo ships. On some shipping routes.

Ihab El-Bannan, Chairman of the Board of Directors of Clarkson Company, expressed his appreciation for the efforts made by the Suez Canal Authority in achieving effective communication with customers, explaining the desire of some shipping lines to obtain some incentives and discounts in light of the high cost of insurance on lines operating in the Red Sea and Bab al-Mandab region. .

As for Hani El-Nadi, representative of the MAERSK Group, he stressed the MAERSK Group’s keenness to have its ships return to transit again through the Suez Canal as soon as the situation stabilizes, in light of the group being affected by the repercussions of the current crisis, as some of its ships were subjected to direct attacks during their crossing from the Red Sea.

Ezz El-Din Labib, Director of Operations at the MSC Shipping Line, confirmed that the Suez Canal will remain the main navigation channel for the group, which has resorted to reducing the number of its flights through the Red Sea in light of the tensions of the situation, stressing that the coming period will witness the return of the group’s ships to transit again through the Suez canal.

Meanwhile, Captain Mohamed Badawi, Chairman of the Board of Directors of the Gulf Agency, saw that the demand of some shipping lines from the Suez Canal Authority to grant them discounts and incentives is not the ideal solution in light of the current crisis, which is predominantly of a security nature rather than an economic nature.