Suez Canal Reports 28% Decline In Shipping Volume Amid Rising Disruptions

According to official figures, over the ten days that ended on January 2, the amount of shipping via the Suez Canal decreased by 28% year over year. Recent data from the PortWatch platform of the International Monetary Fund indicates that interruptions in the Red Sea have recently worsened, endangering essential trade routes. However, the data also showed that, over the same period, the shipping volume into the Cape of Good Hope increased by 67%.

The primary reason for this is that major international freight companies had to divert their cargo around the Cape of Good Hope to avoid the Suez Canal as a result of the attacks on vessels in the Red Sea last month. Major freight companies, such as Denmark’s Maersk and MSC, began using this rerouting approach around Africa in mid-December, which, as industry analysts had predicted, resulted in significant costs and delays.

At the time, the head of Egypt’s Suez Canal Authority strongly emphasized keeping a close eye on Red Sea tensions and their possible effects on canal traffic. Chair Osama Rabea said in a statement that the authority remains vigilant about how the ongoing Red Sea tensions affect canal traffic.

By the end of the month, though, there were signs of a comeback to the Suez Canal route, as Maersk announced that several dozen container ships would be scheduled for passage via the waterway and the Red Sea in the coming weeks. The organization stated that any unique backup plans that may have been developed could cause the schedule to be altered.

Additionally, Maersk revealed plans to resume eastbound and westbound voyages to the Red Sea. At the same time, CMA CGM of France declared that more ships were passing via the Suez Canal. The shortest maritime route connecting Europe and Asia is the waterway, carrying around 15% of all marine traffic worldwide. Furthermore, the Suez Canal is important because it provides Egypt with a vital supply of foreign exchange.

Reference: Arabnews

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Source: Maritime Shipping News