According to foreign media reports, the Suez Canal Authority is currently actively strengthening communication with major global shipping companies. Against the backdrop of the ongoing tense situation in the Middle East, canal traffic has shown its first significant rebound since the regional crisis erupted at the end of 2023. Data shows that the number of ships returning through the Suez Canal in October hit a new high since the conflict began.
Admiral Ossama Rabiee, Chairman of the Suez Canal Authority, chaired a closed-door meeting in Cairo, inviting representatives from 20 international shipping companies and agencies to discuss the latest security situation and future route planning in the Red Sea and Bab al-Mandab Strait region. The Authority stated that such meetings will be held regularly with the aim of “consulting on future sailing plans and schedule arrangements,” while also encouraging major liner companies to “resume trial voyages” to assess the actual transit conditions.
Official data shows that between July and October this year, the total tonnage passing through the Suez Canal increased by approximately 10% year-on-year. Although the number of ships only saw a slight increase of 2%, the average vessel size has significantly expanded, reflecting that larger vessels are once again choosing to transit via the canal. Over the four-month period, more than 4,400 ships passed through the Suez Canal, with 229 ships returning in October alone.
It is noteworthy that the Suez Canal Authority is focusing on promoting the resumption of this route by major container shipping lines. Recently, with the support of the EU’s “EUNAVFOR Aspides” escort operation, two large container ships from the French shipping giant CMA CGM, each with a capacity of over 17,000 TEU, transited the Suez Canal. This is seen as an important signal of restored market confidence. However, its flagship 23,000 TEU vessel class has not yet fully returned.
Meeting minutes indicate that CMA CGM has announced plans to further increase voyages via the Suez Canal. Other major carriers such as Hapag-Lloyd, MSC, Evergreen Marine, and COSCO Shipping have also released positive signals—MSC expects “southbound voyages to resume rapidly in the near future,” Evergreen Marine stated it will “resume the route immediately once the security situation is fully stabilized,” and COSCO Shipping judges that as the regional situation gradually stabilizes, more shipping companies will successively return to the Suez Canal.
However, some industry insiders pointed out that high insurance costs remain the biggest obstacle for shipping companies to resume using the Suez route. Abdel Aziz Nabil, a representative from Inchcape Shipping Agency, stated at the meeting that the insurance premium rates for ships sailing through the Red Sea and Bab al-Mandab Strait are still high, which has become a key factor delaying the large-scale resumption of navigation.
Industry analysis suggests that this move by the Suez Canal Authority aims to rebuild shipping companies’ confidence in this route. If the security situation continues to improve and insurance costs gradually decrease, more mainstream shipping companies are expected to resume regular routes in the coming months, which will have a positive impact on the global shipping landscape and route costs.
