Plans to end the war in Gaza could help restore global shipping through the Suez Canal, where traffic has plunged by 60 per cent due to Houthi rebel attacks in the Red Sea, reports American Shipper.
The Suez Canal Authority said the waterway now sees just 32 ships daily, down from 75 before the conflict. Supertankers rarely use the route, which has been deemed unstable by ocean carriers and insurers.
Chairman Osama Rabie said indirect talks between Hamas and Israel in Egypt may lead to a gradual recovery in 2025. A recent Houthi statement pledging not to target Western ships could accelerate the rebound.
The canal's toll revenues fell by more than 60 per cent in 2024, dropping to US$6-7 billion from a record US$10.25 billion in 2023. The crisis has hit Egypt hard, where canal income makes up 15 per cent of foreign currency and 10 per cent of GDP.
In early 2024, major carriers began rerouting vessels via the Cape of Good Hope, adding up to two weeks to voyages between Asia, the US and Europe. The shift disrupted terminals and supply chains globally.
China has successfully tested a trans-arctic shipping route that could cut up to 18 days off delivery times, offering an alternative for time-sensitive cargo.
Despite a recent budget surplus, Egypt faces pressure on domestic services amid regional instability in Syria and Iran. Rabie said the October 2 missile attack by Houthis on a Dutch vessel, which killed one crewman, underscores the ongoing risk.
https://www.shippingazette.com/news?news_id=9251000000492
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