The current challenges remain temporary… The Canal continues to implement its strategy to develop the waterway and its maritime services.
Major shipping lines have confirmed their return to transiting through the Suez Canal once the region stabilizes.
Half of the EU’s fuel shipments in March have transited through the Suez Canal during the ceasefire period.
166 vessels rerouted from navigating the Cape of Good Hope route to transiting through the Suez Canal since the beginning of February.
The crisis proved the SCA’s agility through the provision of premium services in normal conditions and in emergencies.
In light of the situation’s developments in the Red Sea region, the Suez Canal Authority stresses its commitment to continue its efforts that aim towards achieving continuous and active communication with all its clients and to build upon the strategic relations it has with major shipping lines as well as the acting international chambers of shipping and organizations in the global maritime community.
Those efforts are clearly manifested in the direct and regular meetings held with numerous actors and people of influence within the global maritime community; most notably the Secretary-General of the International Maritime Organization (IMO), the Chairman of the International Chamber of Shipping, CEOs of the major shipping lines and representatives of maritime agencies. That is to discuss the geopolitical and security-related challenges the region is witnessing as well as their repercussions on the sustainability of global supply chains.
Those efforts have resulted over the past period in achieving many successes in addition to enhancing ways of joint cooperation with partners and clients in more than one aspect; including increasing the investment portfolio of a number of shipping lines in Egypt such as Maersk Group which has dedicated great efforts to increasing its investments in East Port-Said Port and inject new capital in the ship scrapping project in Damietta Port which reflects the pivotal role of the Suez Canal in supporting the Group’s activities in Egypt.
Maersk Group has also been keen on joint collaboration to emphasize its significance through naming the Suez Canal as one of its main operational routes for the Gemini Cooperation (The Network of the Future) which brings together Maersk Group with Hapag Lloyd of Germany as of last February. That is in addition to continuing discussions on the Group’s navigational policies and future schemes to increase the rate of their vessels’ transit through the Suez Canal once the situation stabilizes completely in the Red Sea region.
The aspects of cooperation with major shipping lines are not limited to that, but it extends to include various fields like cooperation in the field of training as last month a joint cooperation contract was signed with Maersk Training to organize advanced training programs for SCA personnel in leadership and crisis management. Whereas the SCA provides advanced training programs for ship masters from various shipping lines on the safe transit of the Suez Canal through its Maritime Training and Simulation Academy.
The major shipping lines’ concern to maintain the strategic relations with the Suez Canal is very clear in the statements of Mr. Soren Toft, the CEO of MSC, on not preferring navigation around the Cape of Good Hope as it lacks the primary navigational services and the readiness to resume transiting through the Suez Canal once stability is fully restored to the region.
This is in line with the statements made by numerous actors in the global maritime community which stresses the vital role of the Canal and its significance in the sustainability of global supply chains. Mr. Arsenio Dominguez, the Secretary-General of the International Maritime Organization, stated that the Suez Canal is an indispensable waterway, and expressed the IMO’s support to promote navigation through the Suez Canal thanks to the decreased levels of harmful carbon emissions it helps achieve and ensuring a sustainable work environment for seafarers.
The statements of the French President’s Special Envoy revealed that India–Middle East–Europe Economic Corridor (IMEC) will not compete with the Suez Canal, pointing out the clear difference in terms of the accommodation capacity of the new corridor, currently under construction, which relies on maritime transport in some phases, in addition to rail transport.
Reports from international shipping institutions have reinforced the importance of the Suez Canal for the movement of oil imports to Europe.
According to the Kpler analysis company, half of the European Union’s fuel shipments in March transited through the Suez Canal, during a period of relative calm and the beginning of the return of stability during the ceasefire, which stresses the interest of major shipping lines in resuming transit through the Suez Canal once stability returns to the region.
The SCA navigation statistics also recorded 166 vessels adjusting their routes to transit through the Suez Canal instead of using the Cape of Good Hope route since the beginning of February, a clear indication of the impact of the situation in the Red Sea region on vessel transit rates through the Canal.
Despite the escalating events and increasing challenges, the Suez Canal has not stopped providing its navigational and maritime services since the outbreak of the crisis. Rather, it has continued its efforts to support comprehensive and integrated development through ongoing waterway development projects. This came in parallel with its efforts to improve the level of the navigational services, as well as introducing a package of new navigational services that were not previously available.
Coinciding with the fourth anniversary of the successful refloating of the container vessel EVER GIVEN, which was achieved thanks to the readiness of the Authority’s technical and human capabilities and the support of its maritime fleet with new tugboats, the SCA celebrates the completion and successful operation of the Southern Sector Development Project.
This project has increased the Canal’s navigational safety factor and reduced the effects of wind and water currents on transiting vessels. Furthermore, it has also increased the Canal’s capacity to accommodate special transit operations, such as the transit of the floating dock “DOURADO,” with a beam of 90 meters, which would not have been possible without the completion of the Canal expansion project as part of the Southern Sector Development Project. The maximum width allowed for Canal transit prior to the implementation of the expansion project was 70 meters, according to the Rules of Navigation.
As events unfold, the Canal's ability to respond flexibly and positively to the demands of the crisis is revealed, meeting clients' requirements by improving the level of existing navigational services, and introducing a package of new navigational services that were not previously available, including the Port Said Shipyard providing maintenance and repair services to two vessels affiliated to MSC.
In the same way, the Suez Shipyard Company, affiliated to the SCA, successfully provided urgent maintenance and repair services to the Greek-flagged bulk carrier “ZOGRAFIA” after it was attacked in the Red Sea. Furthermore, it provided maritime salvage services to unload the cargo of the Greek-flagged oil tanker SOUNION, which was attacked also in the Red Sea. The necessary measures and preparations were then taken to tow it safely through the Suez Canal.
These challenges serve to demonstrate the Canal’s unparalleled leadership. The Canal continues to serve as an artery of goodness and prosperity, and a symbol of defiance and resilience, unrivaled by any competitor, and unchallenged by any alternative route. The Canal's significance rises above change and circumstances, and, as always, it documents for history the ingenuity of location time, and the capabilities of the Egyptians.
The Canal's navigation statistics, before the escalation of security tensions in the region, recorded unprecedented numbers throughout the history of the Canal during the calendar year 2023, achieving the highest annual transit rate of 26434 vessels, the highest annual net tonnage of 1.56 billion tons, and the highest annual revenue of 10.3 billion dollars, surpassing all the numbers previously recorded.
The Suez Canal Authority urges the media outlets to ensure accuracy, adhere to objectivity, and refrain from publishing any false data or analyses that could cause confusion, cast doubt on the capabilities and potential of the world’s most important maritime facility, or harm its reputation and global standing. Additionally, the Suez Canal Authority emphasizes the importance of obtaining accurate information from the Authority’s official sources.
Source: Suez Canal Authority