Egypt’s Suez Canal revenues rose by 14.2% year-on-year from July to October, thanks to improved Red Sea conditions and increased traffic. In October alone, 229 ships transited the canal, the highest since the regional crisis began. The positive atmosphere post-Sharm el-Sheikh summit has encouraged carriers to resume routes.
The cruise ship Aroya, part of the Cruise Saudi initiative, recently made a significant transit of the Suez Canal, a rare feat for passenger vessels. Carrying approximately 2,300 passengers and 1,500 crew, it is set to visit Sharm El-Sheikh before concluding its journey in Jeddah, Saudi Arabia.
The Suez Canal has resumed operations for mega vessels, welcoming the CMA CGM Osiris, which has a capacity of 15,536 TEU. This historic transit marks a turning point, as the canal introduces a 15% rebate to boost traffic. The return of large ships promises to revitalize global shipping operations.
The Suez Canal Authority is offering a 15% discount on transit fees for cargo ships over 130,000 metric tons starting May 15, lasting 90 days. This decision responds to the Red Sea security crisis, following a ceasefire with the Houthi militia, amid ongoing threats toward vessels linked to Israel.
During the 14th Annual International Maritime Transport and Logistics Conference, Osama Rabie, head of the Suez Canal Authority, reported that 47 ships have rerouted through the canal this month, signaling renewed stability in the Red Sea. He urged collaborative efforts to tackle security challenges impacting global supply chains.
The Suez Canal Authority (SCA) is ready to resume full operations and welcome major shipping companies as global trade begins to flow smoothly. Chairman Osama Rabie and IMO Secretary General Arsenio Dominguez discussed steps to ensure the smooth operation of trade routes, emphasizing stability in the region. Efforts are underway to revitalize traffic and revenue.
In 2025, container growth dynamics are set to continue, but challenges loom with India’s international relations. Despite potential hindrances, trade growth is expected, especially in Europe and the USA. MSC plans to expand services in response to increased trade, utilizing Vizhinjam as an anchor. However, port congestion and infrastructure improvements remain critical issues.
Vyron Vasileiadis, Chairman of APE owner V Group, unveiled a groundbreaking project focusing on solid waste collection from ships in waiting areas. The plan includes establishing a waste-derived fuel plant for green hydrogen production. A strategic partnership with key players in the sector highlights a holistic approach to sustainable practices in the maritime industry.
Egypt recently conducted a successful test of a new channel near the southern end of the Suez Canal. The trial run saw two ships passing through without incidents, aiming to increase the canal’s capacity by 6 to 8 ships daily. The expansion comes after a drop in revenue due to attacks by Yemen’s Houthi militants.
The vessel Sounion is undergoing an offloading operation near the Suez Canal in Egypt, aided by the tug Aigaion Pelagos and the tanker Delta Blue. Despite previous attacks on Delta Blue, the operation is progressing smoothly, with 150,000 tonnes of oil still to be transferred.
The Red Sea crisis has severely impacted Egypt’s Suez Canal, with a significant drop in revenues and ship traffic. The ongoing Houthi attacks have led major carriers to bypass the canal, opting for longer routes. To mitigate losses, the Suez Canal Authority has extended fee discounts for various vessels, aiming to boost competitiveness and attract more traffic.
German shipping company Hapag-Lloyd anticipates a prolonged halt in shipping through the Suez Canal, even post-ceasefire between Hamas and Israel. The company cites ongoing Houthi attacks as a significant hindrance to normal operations. Both Hapag-Lloyd and Maersk faced substantial stock declines following this update, signaling broader disruptions in commercial shipping worldwide.
Egypt is considering expanding the Suez Canal to enhance traffic flow and prevent blockages. Revenue has dropped due to attacks in the Red Sea. Initial studies for the expansion will take 16 months and could boost competitiveness. Funding will come from the Suez Canal Authority’s budget to reduce state burden.
The UNCTAD has raised concerns about the impact of geopolitical tensions and climate change on global trade, particularly affecting shipping routes like the Suez Canal and the Panama Canal. These disruptions have led to a decline in trade, increased freight rates, longer routes, and higher emissions, with potential economic consequences. The organization calls for international cooperation to address these challenges.
A sharp drop in Suez Canal revenue due to sea attacks by Yemen’s Houthis has exacerbated Egypt’s economic crisis, putting pressure on foreign exchange sources and increasing the urgency for reforms and international assistance. Declining remittances, budget deficits, and the printing of money have further contributed to Egypt’s economic woes.
