Suez Canal Authority: Positive Indicators Signal Imminent Recovery in Shipping Traffic

Egypt’s Suez Canal Authority (SCA) is witnessing clear signs of recovery in global shipping traffic, supported by improving security conditions in the Red Sea and the gradual return of major international shipping lines, according to SCA Chairman Admiral Osama Rabie.

Speaking during a high-level meeting with representatives of global shipping lines and maritime agencies on Wednesday, Rabie revealed that navigation statistics for the first half of the 2025–2026 fiscal year showed a notable improvement compared to the same period a year earlier.

The number of vessels transiting the canal increased by 5.8%, while net tonnage surged by 16%, driving revenues up by 18.5% year-on-year. Rabie described these figures as “strong indicators” that the canal’s revenues are on a path to sustained recovery.

Rabie attributed the positive momentum to the relative stabilization of security conditions in the Red Sea region, which has encouraged several shipping lines to resume transits through the canal after months of rerouting via the Cape of Good Hope.

He highlighted Egypt’s diplomatic efforts, particularly the “Peace Summit” hosted in Sharm El Sheikh under President Abdel Fattah El Sisi, as instrumental in restoring confidence among global maritime stakeholders. The summit, Rabie said, sent reassuring messages regarding the safety of navigation through the Red Sea and the Bab el-Mandeb Strait.

“The current environment is increasingly conducive to the full return of shipping lines to one of the world’s most vital maritime corridors linking East and West,” Rabie stated.

The SCA chairman also reviewed ongoing development efforts, including the expansion and dual-lane project in the canal’s southern sector, alongside enhancements in navigational safety and service quality.

To accelerate the return of traffic, the authority has rolled out targeted incentives, including a 15% discount for container vessels with a capacity of 130,000 tons or more, whether laden or empty. Rabie noted that additional incentive schemes are currently under review for other vessel categories.

Hani El-Nadi, representative of A.P. Moller–Maersk in the Middle East and North Africa, confirmed the resumption of one of the group’s services through the Suez Canal, calling it a strategic step toward a full return.

Meanwhile, Wilhelmsen and Inchcape representatives stressed the importance of reducing marine insurance costs in the Red Sea to further encourage major carriers to resume regular transits.

Marwan El-Sammak of Hapag-Lloyd projected that 2026 could mark a full-scale return of shipping lines to the canal, citing enhanced regional security and substantial investments already made by global carriers in Egyptian ports.

Representatives from COSCO and Yang Ming also emphasized that there is no sustainable alternative to the Suez Canal, particularly given the high operational costs associated with longer routes around Africa.