Suez Canal To Operate At Full Capacity With Return Of Red Sea Stability

The Suez Canal, one of the world’s most used shipping lanes will resume full operations as major shipping lines slowly return, after improved stability in the Red Sea and Bab al-Mandab regions.

This announcement was made after a meeting between Admiral Ossama Rabiee, Chairman of the Suez Canal Authority (SCA), and Mr. Arsenio Dominguez, Secretary-General of the International Maritime Organization (IMO), held at the SCA headquarters in Ismailia on Tuesday.

Adm. Rabiee confirmed that the Suez Canal is prepared to operate at full capacity, welcoming the return of global trade. He said that the major shipping lines are already returning to transit through the canal, with vessels from the CMA CGM shipping line scheduled to begin transiting the Suez Canal on January 23.

The Suez Canal has faced several challenges in recent months due to tensions in the Red Sea region.

During the first quarter of the 2024/2025 fiscal year, the number of vessels passing through the canal dropped by 51%, and transit revenues fell by 61.2%, amounting to $931.2 million compared to $2.4 billion in the same period the previous year.

In 2024, Suez Canal revenues fell drastically by 60.7% to $4 billion, down from $10.2 billion in 2023. The number of ships transiting the canal dropped by nearly 50%, from 26,400 vessels in 2023 to approximately 13,200 in 2024.

Despite this, Adm. Rabiee assured that the Suez Canal Authority has been working tirelessly to maintain and improve its services.

He pointed to the introduction of new services such as ship repair and maintenance, marine ambulance, fueling, waste collection, and crew change services, ensuring the canal remains operational and able to meet the evolving demands of global maritime trade.

The SCA has also invested in enhancing the safety and capacity of the canal. These improvements will add 6-8 vessels in capacity.

The operational phase of the Suez Canal expansion in the Small Bitter Lakes is set to begin in early 2025, after the completion of updated navigational charts by the Egyptian Navy’s Hydrographic Division.

Rabiee also talked about the SCA’s commitment to sustainability through the “Green Suez Canal” initiative. This includes the development of eco-friendly marine units, converting vessels to operate on biofuels, and introducing clean energy at pilot stations along the canal.

The authority has introduced 27 aluminium pilot boats to assist with pilot boarding and disembarking. Apart from this, 29 multipurpose tugboats are under construction, with several already completed. The construction of rescue tugboats with a bollard pull capacity of up to 190 tons is also underway.

Mr. Dominguez, the IMO Secretary-General, praised the SCA for its advancements in navigational safety and its ongoing efforts to improve environmental sustainability.

The SCA has set a target of generating $9 billion in revenue for the 2024/2025 fiscal year. With the return of stability in the region, the Suez Canal is expected to regain its position as a central hub for global trade.

The meeting also included a visit to the Suez Canal’s Navigation Control Center and the Maritime Training and Simulation Academy, where Dominguez reviewed the progress of various initiatives to enhance maritime safety and environmental sustainability.

Reference: Suez Canal

Source: Maritime Shipping News