Suez Canal to fully operate as major shipping lines resume transits
This announcement came during a meeting between Osama Rabie, chairman of the SCA, and Arsenio Dominguez, secretary-general of the International Maritime Organization (IMO). They discussed the necessary measures to enable the resumption of maritime traffic through the canal.
Rabie explained that the resumed activity follows the restoration of stability in the Red Sea and Bab al-Mandab regions, adding that this development aligns with efforts to ensure the smooth functioning of global trade routes.
The meeting highlights the ongoing cooperation between the SCA and IMO to support the resumption of shipping activity.
In recent months, the Suez Canal faced significant challenges.
Due to tensions in the Red Sea that caused rerouting shipping paths, the number of vessels passing through the canal dropped by 51 percent during the first quarter of the 2024/2025 fiscal year compared to the same period in the previous year.
Suez Canal transit revenues also declined sharply by 61.2 percent to $931.2 million in Q1 FY 2024/2025, down from $2.4 billion during the same period last year.
In 2024, Egypt's Suez Canal revenues plummeted to $4 billion, a 60.7 percent decrease from $10.2 billion in 2023. The number of ships transiting the canal annually dropped by around 50 percent, from 26,400 in 2023 to approximately 13,200 in 2024. Daily traffic fell from 75-80 to 32-35 ships during the same period.
Back on track!
Rabie confirmed that the canal has already begun receiving vessels from the CMA CGM shipping line as part of its EPIC service on the trade route between South Asia and Europe, which started on 23 January.
CMA CGM, a global leader in shipping and logistics, is known for its extensive network connecting major ports worldwide.
Rabie emphasized that the SCA is committed to delivering seamless maritime services and is continuously evolving to meet customer needs, incorporating the latest advancements in the shipping industry.
"The authority has successfully introduced various new services, including ship repair and maintenance, maritime ambulance services, fueling, solid waste collection and disposal, and crew change services, among others," Rabie stated.
He also highlighted the SCA's intensified efforts to develop the southern sector of the canal. These improvements serve as an additional safety measure and increase the canal’s capacity to accommodate six to eight vessels, enhancing the canal's ability to manage emergencies.
Rabie mentioned that the operational phase of the Suez Canal expansion project in the Small Bitter Lakes would commence in the first quarter of 2025. This will follow the completion of updated navigational charts by the Egyptian Navy's Hydrographic Division, including a newly added 10-kilometre stretch of the double canal from kilometre 122 to kilometre 132.
The Suez Canal is also making strides in its "Green Suez Canal" initiative to promote environmental sustainability. This initiative includes developing vessels with eco-friendly technologies, converting certain vessels to operate on biofuels, using clean energy at pilot stations along the canal, and supporting safe and sustainable disposal of marine waste.
Rabie also outlined recent upgrades to the SCA's diverse fleet, including 27 new aluminium pilot boats designed to support pilot boarding and disembarking operations.
Additionally, the construction of 29 versatile tugboats is underway. Four tugboats with 70-ton pulling power have already been completed, and six more with 75-ton pulling power have been completed.
Seven smaller tugboats, ranging from nine to 15 tons of pulling power, are under construction, and work is progressing on 10 tugboats with 90-ton ASD winches, he added.
He asserted that the first two of these tugboats are expected to be delivered in the first quarter of this year, and the remainder will follow in 2026. The construction of two 190-ton rescue tugboats is also ongoing.
The Suez Canal anticipates generating $9 billion in revenue for the 2024/2025 fiscal year.
For his part, Dominguez stressed the strategic importance of the Suez Canal for global trade and encouraged shipping lines, shipowners, and operators to adjust their schedules as security conditions in the Red Sea stabilize.
He commended the SCA for its navigational and logistical services advancements, which align with the IMO’s goals of promoting safe, efficient, and environmentally sustainable maritime operations. Dominguez expressed interest in collaborating with the SCA on future pollution control training programmes.