Egypt’s Suez Canal Authority (SCA) has said it is well-equipped to handle current challenges and that major shipping lines intend to resume transits through the canal once stability returns to the Red Sea region.
The SCA also reaffirmed its commitment to maintaining strategic partnerships with its clients, stating that it remains dedicated to its waterway and maritime service development strategy despite current disruptions.
The SCA issued a statement on Tuesday emphasising that major shipping lines have confirmed their intention to resume transits through the canal once stability returns to the Red Sea region.
Recent data indicates the canal’s continued importance for global trade, with half of the European Union’s fuel shipments passing through it during a recent truce. Furthermore, since February, 166 vessels have chosen to reroute through the Suez Canal, avoiding the longer route around the Cape of Good Hope.
The Suez Canal Authority asserted that these challenges have demonstrated the Suez Canal’s adaptability and ability to provide services under both routine and emergency conditions.
“In light of ongoing developments in the Red Sea region, the Suez Canal Authority reiterates its commitment to maintaining open and effective communication with its clientele,” the statement said. “The SCA values its strategic relationships with major shipping lines, international shipping organisations, and key stakeholders within the global maritime community.”
The authority said it is actively engaging with influential figures in the maritime sector through regular meetings. These discussions involve the Secretary-General of the International Maritime Organization (IMO), the President of the International Chamber of Shipping, chief executives of major shipping lines, and representatives from shipping agencies. The consultations address geopolitical and security concerns impacting the region and their consequences for global supply chains.
The SCA highlighted that these efforts have strengthened collaboration with partners and clients, including increased investment from several shipping lines in Egypt, particularly the Maersk Group. Maersk is expanding its investments in East Port Said and allocating new capital to a ship dismantling project at Damietta Port, actions that the SCA said underscore the canal’s role in supporting Maersk’s operations in Egypt.
Maersk has also coordinated with the SCA to prioritise the Suez Canal as a primary route for the Gemini Alliance, a collaborative network launched in February with Germany’s Hapag-Lloyd. Discussions are ongoing regarding navigational strategies and plans to increase Suez Canal transits once the Red Sea region is stable.
Collaboration with major shipping lines extends beyond transit to include training initiatives. Last year, the Suez Canal Authority signed an agreement with Maersk Training for advanced leadership and crisis management training programs for SCA personnel. The SCA’s Maritime Training and Simulation Academy also provides specialised training to ship captains from various lines on safe canal passage.
The value major shipping lines place on their relationship with the Suez Canal is reflected in their public statements. Soren Toft, CEO of MSC, has said that he prefers to avoid the Cape of Good Hope route because of its limited maritime services and that he is ready to resume Suez Canal transits as soon as regional stability is restored.
His views align with those of other figures in the international maritime community who emphasise the Suez Canal importance for global supply chains. Arsenio Dominguez, Secretary-General of the IMO, has said that the Suez Canal is an indispensable navigational artery and has expressed the organisation’s support for optimising canal transit to reduce carbon emissions and ensure a sustainable working environment for seafarers.
Gerard Mestrallet, Special Envoy of the French President, has said that the India-Middle East-Europe Economic Corridor (IMEC) will not compete with the Suez Canal, citing differences in trade capacity and the IMEC’s reliance on both maritime and rail transport.
Data from international maritime institutions reinforces the importance of the Suez Canal for European oil imports. According to an analysis by Kpler, half of the European Union’s fuel shipments in March transited the canal during a period of relative calm and a ceasefire, indicating the eagerness of major shipping companies to resume canal transits as soon as the region stabilises.
Suez Canal navigation statistics show that 166 vessels have chosen to reroute through the Suez Canal since the beginning of February, avoiding the Cape of Good Hope.
Before the escalation of security tensions, the Suez Canal achieved record-breaking figures in 2023, including 26,434 transiting vessels, a net tonnage of 1.6 billion tons, and revenue of $10.3bn, all record highs.
The SCA said it remains dedicated to comprehensive development, continuing its waterway improvement projects while enhancing navigational services and introducing new offerings.
The authority marked the fourth anniversary of the successful refloating of the container ship Ever Given and also the completion of the southern sector development project, which enhances navigational safety and reduces the impact of water and air currents on transiting vessels. The project also allows for the passage of vessels such as the 90-metre-wide floating dock Dourado, which the SCA said would not have been possible before the expansion, as the maximum permissible beam was 70 metres.
The SCA also said that the Port Said Naval Shipyard had provided maintenance and repair services to two MSC vessels and that the Suez Naval Shipyard Company had provided urgent repairs to the Greek bulk carrier Zografia after it was attacked in the Red Sea. Marine salvage services were also provided to offload the cargo from the Greek oil tanker Sounion, which was attacked in the Red Sea, followed by towing it through the canal.
“These challenges reaffirm the Suez Canal’s enduring leadership,” the SCA statement said. “It remains a vital artery of trade and prosperity, a symbol of resilience and unwavering determination, unparalleled by any competitor or alternative route.”
The Suez Canal Authority urged media outlets to exercise accuracy and objectivity and to refrain from publishing inaccurate information that could undermine confidence in the canal or damage its reputation, adding that it is important to rely on official sources for accurate information.
