The Suez Canal is about to return to normal after months of uncertainty. The authority (SCA) has announced that it will resume full use of the canal’s capacity.
The development follows the announcement of a limited ceasefire by the Houthi rebels, which paves the way for stabilization in the region and the resumption of regular shipping traffic.
As the main link between Europe, Asia and Africa, the Suez Canal facilitates the transportation of around 12% of global maritime trade. The recent geopolitical tensions have led to a drastic decline in shipping traffic.
Revenue from transit fees fell sharply by 61.2% to $931.2 million (€856.7 million) in the first quarter of the 2024/2025 financial year, compared to €2.21 billion in the same period of the previous year.
Suez Canal traffic halved from 2023 to 2024
At the same time, Egypt’s revenue from the Suez Canal fell to € 3.68 billion, a decrease of 60.7 % compared to € 9.38 billion in 2023. The number of ships passing through halved from 26,400 in 2023 to 13,200 in 2024. Daily traffic fell from 75-80 to 32-35 ships in the same period.
Despite these challenges, the SCA reacted quickly. Under the leadership of head of authority Osama Rabie, measures were taken to make the canal attractive again for international shipping companies. Safety initiatives along the canal and strategic partnerships, such as the resumption of shipping traffic with CMA CGM (EPIC service from South Asia to Europe), are intended to boost the confidence of shipping companies. Investments in infrastructure and the modernization of navigation systems are key components of this strategy.
The ceasefire agreement in Yemen marks an important step towards regional stability. The Bab al-Mandab, a strategic bottleneck between the Red Sea and the Gulf of Aden, is of central importance for the global energy market. With the stabilization of this region, the Suez Canal will once again become a secure corridor for international trade. (rup)
