Logistics Egypt urges return of Suez Canal traffic after Gaza ceasefire By Pramod Kumar February 3, 2025, 2:39 PM Reuters/ Suez Canal Authority The Suez Canal is ready to accommodate major shipping lines at full capacity, said Suez Canal Authority chairman Osama Rabie Egypt has held talks with 23 maritime companies, encouraging them to resume transits through the Suez Canal following the ceasefire agreement between Israel and Hamas. There are many positive indicators for the Red Sea region as stability returns, said Osama Rabie, chairman of the Suez Canal Authority (SCA). He said the SCA has been flexible in pricing, having maintained its pre-crisis transit pricing policies for all types of vessels. The canal’s southern sector development project has been completed and will commence operation in the upcoming months, Rabie said. Since January 19, six ships connected to the US and UK have passed through the Suez Canal. However, major shipping companies, including Maersk, MSC and Mitsui OSK, continue to avoid the route due to security concerns. The Suez Canal is ready to accommodate major shipping lines at full capacity, Rabie said, adding that safety and efficiency measures are in place. Hani El-Nadi of AP Moller-Maersk Group in the Middle East and North Africa said that the company will resume transits through the Suez Canal once it is satisfied that the security situation has stabilised. He said the company is closely monitoring the positive developments in the Red Sea region and is ready to return to the canal as soon as the situation permits. Mamdouh Taha, CEO of Cosco Shipping Agency, said the return of major shipping lines to the Suez Canal was inevitable, but the maritime community was looking forward to the persistence of regional stability. Suez Canal Economic Zone plans $3bn investment Egypt targets $40bn to meet budget funding needs Suez slump compounds Egypt’s foreign currency crisis Suez Canal revenue fell 60 percent, or $7 billion, year on year in 2024 as ongoing instability in the Red Sea disrupted global shipping traffic. Yemen’s Ansar Allah group, widely referred to as Houthis, began attacking ships in the Red Sea in November 2023, saying their actions were a response to the conflict in Gaza. As a result, major shipping companies rerouted vessels around the Cape of Good Hope and the tip of Africa. This adds an extra 3,000 nautical miles and 10 days to the journey, as well as up to $1 million extra on the fuel bill for each trip between Asia and Northern Europe. The Suez Canal provides around 10 percent of Egypt’s current account income, consultancy firm BMI estimates.