Stability Returns to the Red Sea, Says Suez Canal Authority Amid Continued Shipping Challenges
Suez Canal Authority Chairman highlights positive indicators in the Red Sea region as major shipping companies reroute vessels to avoid ongoing threats.
Suez Canal Authority (SCA) Chairman Osama Rabie has noted signs of stability returning to the Red Sea, a region previously impacted by conflict and security concerns.
During a meeting with senior executives from AP Moller-Maersk, Rabie encouraged the shipping giant to consider the improving situation when planning future maritime schedules.
Although Rabie’s comments did not specify the timing of the meeting, they come amid an ongoing disruption in global shipping caused by threats in the Red Sea.
Several major shipping companies, including Maersk, had rerouted their vessels away from the Red Sea and Gulf of Aden, opting for longer routes around southern Africa due to attacks from Houthi militants.
Since November 2023, the Houthis have carried out more than 100 attacks on vessels in the region, sinking two ships, seizing another, and killing at least four seafarers.
This unrest has severely affected Egypt’s Suez Canal revenues, with President Abdel Fattah El-Sisi estimating a loss of approximately $7 billion in 2024. Despite a recent announcement from the Houthis to ease their attacks on maritime vessels, Maersk confirmed it would continue to avoid the region.In contrast, the disruption has led to a surge in port traffic in Spain, with a 6 percent increase in goods moving through Spanish ports in 2024. Ports like Las Palmas in the Canary Islands and Barcelona have reported increases in volume, and the Spanish port agency expects the trend to continue as companies adapt to longer shipping routes around Africa’s southern tip.The longer shipping routes have impacted businesses, with some Spanish retailers opting to airfreight goods to meet demand due to delays caused by the extended transit times.
Senior shipping analysts have stated that shipping companies will likely wait for long-term stability before returning to the Red Sea, to avoid further disruption.
The SCA’s call for reassessment of maritime schedules reflects growing optimism but cautious planning in light of the ongoing challenges in the region.
During a meeting with senior executives from AP Moller-Maersk, Rabie encouraged the shipping giant to consider the improving situation when planning future maritime schedules.
Although Rabie’s comments did not specify the timing of the meeting, they come amid an ongoing disruption in global shipping caused by threats in the Red Sea.
Several major shipping companies, including Maersk, had rerouted their vessels away from the Red Sea and Gulf of Aden, opting for longer routes around southern Africa due to attacks from Houthi militants.
Since November 2023, the Houthis have carried out more than 100 attacks on vessels in the region, sinking two ships, seizing another, and killing at least four seafarers.
This unrest has severely affected Egypt’s Suez Canal revenues, with President Abdel Fattah El-Sisi estimating a loss of approximately $7 billion in 2024. Despite a recent announcement from the Houthis to ease their attacks on maritime vessels, Maersk confirmed it would continue to avoid the region.In contrast, the disruption has led to a surge in port traffic in Spain, with a 6 percent increase in goods moving through Spanish ports in 2024. Ports like Las Palmas in the Canary Islands and Barcelona have reported increases in volume, and the Spanish port agency expects the trend to continue as companies adapt to longer shipping routes around Africa’s southern tip.The longer shipping routes have impacted businesses, with some Spanish retailers opting to airfreight goods to meet demand due to delays caused by the extended transit times.
Senior shipping analysts have stated that shipping companies will likely wait for long-term stability before returning to the Red Sea, to avoid further disruption.
The SCA’s call for reassessment of maritime schedules reflects growing optimism but cautious planning in light of the ongoing challenges in the region.
