Suez Canal Seeks Return of Shipping Companies as Safety Concerns Ease

The Suez Canal Authority (SCA) has called for the resumption of maritime traffic through the critical waterway, following a cessation of attacks by Houthi militants. In a statement, SCA Chairman Ossama Rabiee met with representatives from 23 major shipping companies, including Mediterranean Shipping Co. and A.P. Moller-Maersk, urging them to return to their usual routes through the Suez Canal.

The SCA highlighted “positive indicators” in the Red Sea region, signaling a return to stability. Shipping companies, having diverted their vessels around Africa due to security concerns, were urged to adjust their schedules for normal operations.

Since the Israel-Hamas war, the Houthis have claimed responsibility for over 130 attacks on ships in the Red Sea and Gulf of Aden. This led many operators to seek alternative, longer routes, increasing fuel consumption and freight rates. Oil transits through the Suez Canal dropped dramatically from 7.9 million barrels per day (b/d) in 2023 to just 3.9 million b/d in 2024.

However, following a decline in Houthi attacks, and their commitment to halt attacks on ships except those flagged in Israel, shipping lines are cautiously preparing for the resumption of regular traffic.

Despite recent incidents, such as a Hong Kong-flagged vessel catching fire in the Red Sea, analysts anticipate a gradual return to normalcy in the coming months. The Cape of Good Hope route remains in use for many Asia-Europe trades, though port transits in the Bab al-Mandab Strait have decreased significantly from the typical level of more than 70 ships per week to just 19 in late January.