Maritime Executive: Suez Canal Invites Shipping Companies Back After Best Month in Two Years

The Suez Canal Authority is continuing its outreach to the shipping industry as it reported its first significant increases in transit volume since the start of the regional crisis in late 2023. They reported the highest monthly rate of returning vessels in October since the beginning of the war in the Middle East.

News of the improvement was shared as the Chairman of the Suez Canal Authority, Admiral Ossama Rabiee, hosted a meeting of the representatives from 20 major shipping companies and agencies to discuss the developments in the Red Sea and Bab el-Mandeb region. The authority is hosting periodic meetings, which it says are to “consult on sailing plans and schedules for the coming period.” Admiral Rabiee is also “inviting” shipping lines to at least conduct trial voyages.

Between July and October, the authority reports tonnage passing through the Suez Canal was up 10 percent over last year. The number of ships, however, lagged with just a two percent improvement, but also illustrates that larger ships are making the transit versus last year. Over 4,400 vessels made the transit in the four months, with 229 ships returning to the canal in October.

The Suez Canal Authority, however, wants to get the major shipping lines back into the canal. It highlighted that CMA CGM, which has been sending smaller vessels through the Red Sea with escorts from EUNAVFOR Aspides, recently sent two of its larger vessels through the Suez Canal. CMA CGM sent its 17,000 TEU plus vessels through in the latest trial, but it has yet to send the 23,000 TEU flagships of the fleet back to the Suez Canal.

In a summary of the meeting, the authority reports that CMA CGM announced that it plans to increase the group’s voyages through the Suez Canal. Similarly, other carriers, including Hapag-Lloyd, said they were monitoring developments. MSC Mediterranean Shipping Company said it anticipates a “swift return of southbound vessels in the coming period.” Evergreen said it is ready to resume as soon as the situation stabilizes completely and permanently, and COSCO also expects many shipping lines, with the return of stability, will route ships through the canal.

The representative of the Inchcape Shipping Agency, however, pointed out that one of the key hurdles remains insurance. Abdel Aziz Nabil told the meeting that the high cost of marine insurance for transiting the region remains a significant obstacle, and he believes it is the main reason for the delay in many shipping lines resuming their Suez Canal operations.