The Egyptian Suez Canal Authority is intensifying its efforts to reverse the decline in shipping volume and sharp drop in fiscal revenue caused by the Red Sea crisis. Recently, during a meeting with Danish Ambassador Lars Bo Møller and his delegation, Osama Rabie, Chairman of the Suez Canal Authority, publicly called on Maersk to “take the lead in resuming navigation via the Suez Canal” to support the waterway’s recovery.
According to a statement from the Suez Canal Authority, Osama Rabie emphasized the long-standing cooperative relationship between the Authority and Maersk during the meeting, expressed high appreciation for the partnership “based on trust and mutual benefit,” and held in-depth exchanges with the Danish representatives on the security situation in the Red Sea region. The Danish Ambassador stated that returning to the Suez Canal is an “imperative” choice, as this route remains a lifeline for global trade.
Maersk has a long history with the Suez Canal; its affiliated APM Terminals operates a significant container terminal at East Port Said at the northern end of the canal. The expansion project of this terminal is underway and is expected to significantly enhance the port’s handling capacity and competitiveness.
However, since December 2023, successive attacks in the Red Sea region have drastically worsened maritime security. After the “Maersk Gibraltar” narrowly avoided an attack, Maersk immediately ordered a suspension of all transits through the Bab el-Mandeb Strait. Just two weeks later, the “Maersk Hangzhou” was attacked en route to Port Suez and nearly boarded by armed speedboats. Following this incident, Maersk comprehensively rerouted its vessels around Africa.
Despite the gradual deployment of international escort operations, Maersk has not yet resumed routes via the Suez Canal, citing the continued high uncertainty regarding regional security. In July of this year, the “Maersk Sentosa,” which carries cargo for the U.S. government, was attacked again in the Gulf of Aden, further reinforcing the company’s cautious stance on Red Sea navigation.
Meanwhile, some liner companies, such as CMA CGM, have gradually resumed sailing through the Suez Canal under the escort of the EU’s “EUNAVFOR Aspides” naval operation. However, most major carriers remain wary of the risks and have chosen to delay their return to this route.
The Suez Canal Authority has been frequently engaging with major liner companies in recent months in an attempt to rebuild confidence. But the sinking of two bulk carriers by the Houthis in July and recent damage to a cargo ship in the Gulf of Aden have once again hindered plans for resuming navigation.
According to the latest data released by the Central Bank of Egypt, the Suez Canal still achieved revenue of $1.8 billion in the first half of 2025, a decrease of only 1.4% year-on-year. However, revenue for the entire /2025 fiscal year plummeted by 45.5% to just $3.6 billion. The number of transiting vessels decreased by 38.5% to approximately 12,400 during the same period, and net tonnage sharply fell by 55% to 483 million tons.
Against the backdrop of continued pressure on the Egyptian economy, the recovery of Suez Canal traffic has become a national strategic task. Industry insiders believe that if the “peace agreement” between Israel and Hamas is effectively implemented, it could become a major turning point for the security landscape of Red Sea shipping. If stable conditions persist, the shipping market may witness a chain reaction in the coming months, including the restoration of voyages, a decline in freight rates, and eased pressure on ports. For the Suez Canal Authority and the Egyptian economy, this agreement is undoubtedly a much-needed glimmer of hope.
However, some analysts also warn that a full recovery of Red Sea shipping in the short term remains uncertain. If the Houthis view attack actions as an “autonomous bargaining tool” or continue attacks for other political purposes, localized threats may persist. Furthermore, the sustained implementation of the ceasefire agreement, the pace of Israeli military actions, and adjustments to U.S. policy in the Middle East could all impact the durability of regional security.
