Egypt’s Suez Canal Authority Chairman Osama Rabei announced on Sunday that 47 ships have changed their routes to transit the Suez Canal instead of circumnavigating the Cape of Good Hope since the beginning of February. This marks a significant shift as global shipping lines reconsider the strategic waterway following months of disruption in the Red Sea region.
Rabei made the announcement during the 14th Annual International Maritime Transport and Logistics Conference in Alexandria, where industry leaders gathered to address challenges and opportunities in global trade. According to a statement from the Suez Canal Authority, the decision by shipping companies to return to the canal was influenced by ongoing discussions with the SCA and growing signs of stability in the Red Sea.
He emphasized that the positive developments in regional security have encouraged more vessels to alter their routes, with 47 ships rerouted this month alone. Egypt’s Suez Canal Authority Chairman Osama Rabei expressed optimism that this trend would continue, anticipating more shipping lines to resume using the Suez Canal as geopolitical tensions ease.
The Red Sea crisis, triggered by a series of attacks on commercial vessels by Iran-backed Houthi militants, created unprecedented security challenges in the region. The attacks, which began in October 2023, targeted Israeli-linked ships as a display of solidarity with Gaza during the Hamas-Israel conflict. As a result, many vessels avoided the Suez Canal, opting for the longer, more expensive route around the Cape of Good Hope.
This diversion significantly impacted Egypt’s economy, with Suez Canal revenues dropping by over 60 percent in 2024, amounting to an estimated $7 billion in lost revenue. The decline not only affected Egypt’s financial outlook but also contributed to increased shipping costs and global trade delays.
However, Egypt’s Suez Canal Authority Chairman Osama Rabei noted that the situation began to improve after a ceasefire agreement in Gaza took effect on January 19. The truce resulted in the cessation of Houthi attacks on ships, leading to renewed stability in the Red Sea. Consequently, more vessels have resumed their passage through the Suez Canal, indicating a potential recovery for the critical maritime route.
Looking forward, Rabei reaffirmed the Suez Canal Authority’s commitment to maintaining open communication with international shipping lines to restore confidence in the canal’s safety and reliability. He also outlined ongoing efforts to upgrade the canal’s infrastructure and enhance security measures to ensure the continuous flow of global trade.
The return of stability in the Red Sea highlights the strategic importance of the Suez Canal as a pivotal link in global maritime trade. As regional tensions ease, the Suez Canal Authority remains optimistic about the canal’s recovery and its continued role in facilitating international commerce.