Suez Canal ready to return to full operation

The Suez Canal is ready to return to full operation as global trade stabilizes. This was stated by the Chairman of the Suez Canal Authority (SCA) Osama Raby, Egypt Today reports.

The statement was made after Rabi met with the Secretary General of the International Maritime Organization (IMO), Arsenio Dominguez. The head of the Suez Canal Authority emphasized the resumption of the canal’s work after the improvement of stability in the Red Sea and Bab el-Mandeb Strait regions, which previously affected shipping routes.

Tensions in the Red Sea have led to a significant reduction in the number of ships passing through the Suez Canal. In the first quarter of the 2024/2025 financial year (July-September 2024), their number fell by 51% year-on-year. Revenues in the period decreased by 61.2% y/y – to $931.2 million.

In 2024, the Suez Canal’s revenues fell by 60.7% y/y – to $4 billion. The number of vessels that passed through the canal last year decreased to 13.2 thousand from 26.4 thousand in 2023, and daily traffic fell from 75-80 vessels to 32-35.

Rabi reaffirmed SCA’s commitment to providing uninterrupted maritime services and developing to meet the needs of the industry. He noted improvements in operations, including the introduction of services such as ship repair, maintenance, marine ambulance, fueling, and crew change services, among others.

Arsenio Domínguez expressed confidence in the restoration of the canal and urged shipping companies to adjust their sailing schedules as part of the gradual return of traffic through this route.

In its December review of the global shipping outlook, Fitch Ratings predicted that the tanker and dry bulk segment would remain stable in 2025. In general, the shipping industry remains one of the most vulnerable sectors to geopolitical risks, according to the rating agency. This is due to the presence of several bottlenecks on key trade routes, its role in global supply chains, and its limited ability to regulate effective throughput in the short term.