The Suez Canal Authority (SCA) has intensified its efforts to revive dwindling canal traffic by directly engaging global shipping leaders. Amid growing security in the Red Sea region, the SCA is urging the maritime community to reconsider its routes and return to the canal. These discussions follow a significant drop in vessel transits due to the threat of attacks launched by Yemen’s Houthi rebels.
Chairman Osama Rabie has spearheaded the Authority’s outreach, personally meeting with representatives from 23 major shipping lines. Industry heavyweights such as Maersk, MSC, CMA CGM, and Hapag-Lloyd participated in the recent discussions, which focused on the evolving security dynamics and the strategic importance of the canal. These meetings aim to restore trust and encourage shipping companies to resume navigation through the historically vital waterway.
Traffic Declines as Security Concerns Escalated
Traffic through the Suez Canal began declining late last year when Houthi rebels initiated a series of attacks on commercial vessels in the Red Sea. The security crisis forced many global shipping companies to divert vessels around the Cape of Good Hope, significantly increasing transit time and operational costs.
As a result, Egypt’s revenue from the Suez Canal sharply dropped, prompting the SCA to evaluate measures that could incentivize the return of maritime traffic. The canal, which serves as a critical link for global trade, experienced a decline of over 40% in daily transits during peak tensions.
Houthi Attacks Cease as Region Stabilizes
Encouragingly, the last reported Houthi attack occurred on December 2, 2024. Since then, the group has publicly announced a halt in targeting commercial ships, except those with ties to Israel. This development has triggered cautious optimism among shipping firms, as the threat level in the Red Sea appears to be subsiding.
Chairman Rabie emphasized that the SCA is closely monitoring the situation and remains committed to ensuring the safety of all vessels passing through the canal. As security stabilizes, the Authority sees a timely opportunity to promote a return to normal operations.
SCA Offers Incentives to Attract Shipping Lines
To make the Suez Canal more attractive amid the gradually improving security environment, the SCA is considering offering discounts on transit fees. Current discussions involve potential reductions ranging from 12% to 15%, depending on vessel types and routes.
These discounts aim to offset the costs shipping lines incurred by avoiding the canal over the past months. By easing the financial burden, the SCA hopes to accelerate the return of shipping companies to the route, restoring both traffic volume and revenue.
Shipping Giants Remain Cautious Despite Progress
Despite these improvements, major shipping companies continue to approach the situation with caution. For example, Maersk has publicly stated it does not anticipate resuming Suez Canal operations before 2025. The company remains wary of potential risks and is waiting for further clarity on long-term regional security.
Nevertheless, the SCA remains confident that open dialogue, combined with financial incentives and improved security, will gradually encourage vessels to return. The Authority has pledged to maintain transparent communication and to adapt policies in line with the changing maritime landscape.
Conclusion: Navigating Towards Recovery
In summary, the Suez Canal Authority is taking bold and proactive steps to restore confidence among global shipping stakeholders. By addressing security concerns, offering financial incentives, and holding direct talks with industry leaders, the SCA is paving the way for a potential resurgence in canal traffic. While caution still dominates the shipping industry’s response, the improving conditions signal a possible turning point for one of the world’s most critical maritime corridors.
