Suez Canal Expects Return of more Shipping Lines as Ceasefire Continues

The Egyptian Suez Canal Authority (SCA) expects more shipping lines to return in the coming period, provided that the ceasefire in the region continues, according to Osama Rabie, Chairman of the authority.

Rabie noted that 47 ships have adjusted their routes to pass through the canal instead of the Cape of Good Hope since the beginning of this month.

This is an indication that the waterway has begun to gradually restore its normal movement since the truce between Israel and Hamas was approved, and after the canal witnessed a sharp decline in revenues of 60% due to the war and geopolitical tensions in the Red Sea, losing about $7 billion during the fiscal year that ends in June, according to the authority’s estimates.

Traffic through the Suez Canal will gradually return to normal by late March, with a full recovery expected by the middle of the year, provided that the ceasefire in Gaza continues, according to previous expectations by the head of the authority.

In turn, A.P. Moller-Maersk ruled out returning its ships to the Red Sea route before the middle of this year, and the world's largest shipping and supply chain company indicated earlier this month that it is too early to plan to return to using the sea route.

Rabie said during his participation in the opening of the annual international conference for shipping and logistics "Marlog" Sunday that the Red Sea crisis imposed unprecedented security challenges, which negatively affected the stability and sustainability of global supply chains, calling for concerted efforts to contain the negative consequences and ensure the continuity of maritime services in the region.

The Houthi group in Yemen had announced that it would stop targeting American and British vessels, in response to the calm in the fighting between Israel and Hamas. However, shipping companies indicated that it is still too early to plan to return to traditional routes.

The head of the authority added: "Discussions with shipping lines and customers' sensing of positive indicators of the return of stability to the Red Sea resulted in 47 ships in February adjusting their voyage routes to pass through the Suez Canal instead of the Cape of Good Hope route."

Currently, 32 ships pass through the canal daily, compared to 75 ships daily before the war in Gaza broke out on October 7, 2023, according to statements by Rabie earlier this month, adding that giant tankers are still unable to pass through the canal at present. Rabie considered that the various challenges were not an obstacle to the Suez Canal to complete the ambitious development plans, to maintain its readiness.