Suez Canal Traffic Resumes After Months Of Disruption, With 47 Ships In Feb

The Suez Canal has seen 47 ships rerouted back to its waters since the beginning of February, showcasing a gradual recovery after months of disruption caused by attacks in the Red Sea.

The chairman of the Suez Canal Authority, Osama Rabie, stated on February 23rd, that these vessels had initially diverted to the Cape of Good Hope but have now resumed passage through the Egyptian waterway.

Rabie revealed that discussions with shipping companies indicate signs of stability returning to the Red Sea, though no specific comparison figures were provided.

The Iran-backed Houthis have launched over 100 attacks on ships, sinking two vessels and killing at least four since November 2023. This has severely impacted the global shipping.

The attacks carried out in support of Hamas, forced many companies to abandon the Suez Canal and opt for a longer, more expensive route around Africa’s southern tip.

The disruptions have had a major financial impact on Egypt, with President Abdel Fattah al-Sisi previously estimating a revenue loss of around $7 billion in 2024 due to declining canal traffic.

The Suez Canal Authority reported that its revenue had dropped by approximately 60% due to the ongoing crisis.

However, on January 20, the Houthis announced that they would limit their attacks to ships linked to Israel after the Gaza ceasefire deal was made.

Rabie had earlier expressed optimism that traffic through the canal could gradually return to normal by late March and fully recover by mid-year, if the ceasefire between Israel and Hamas is maintained.

References: Reuters, Bloomberg

Source: Maritime Shipping News