Suez Canal Traffic May Fully Recover By Mid-2025 If Gaza Ceasefire Holds

The Suez Canal, one of the world’s busiest trade routes, is expected to see a gradual return to normal traffic by later March 2025, with full recovery expected by mid-2025, if the ceasefire in Gaza continues.

The projection comes from Suez Canal Authority (SCA) chief Osama Rabie, who discussed the ongoing disruptions caused by the ongoing conflict.

In a phone interview, Rabie said that the canal is currently handling only 32 ships per day- less than half of the 75 vessels it accommodated before the war between Israel and Hamas began on October 7, 2023.

Large oil tankers are still unable to pass through the waterway, limiting trade flows.

The impact on Egypt’s economy has been severe. Revenue from the canal, a key source of foreign currency, has dropped by about 60%, with expected losses of nearly $7 billion in the current financial year ending in June.

Egyptian authorities allowed the currency to weaken by about 40% in March to stabilise the situation. This helped secure a $57 billion financial package from the International Monetary Fund (IMF) and other global partners, but economic pressures remain high.

Meanwhile, Yemen’s Houthi rebels have announced they will stop targeting U.S. and U.K. ships. However, shipping companies remain cautious and are not yet ready to return to normal routes through the canal.

Reference: Bloomberg

Source: Maritime Shipping News