The Suez Canal, a critical artery for global trade, is witnessing a tentative recovery as dozens of ships have resumed using the waterway following a ceasefire between Israel and Hamas. According to Egypt’s Suez Canal Authority (SCA), 47 vessels have rerouted to the canal since the start of February, opting for the shorter Suez route over the longer Cape of Good Hope path around Africa’s southern tip. This shift marks a positive development for the canal, which had seen a significant decline in traffic due to security concerns in the Red Sea.
The resurgence in canal usage comes after months of disruption caused by Iran-backed Houthi rebels in Yemen, who had targeted ships in the Red Sea in solidarity with Hamas. These attacks forced many global shipping firms to avoid the region, leading to a 60% drop in Suez Canal receipts—a major blow to Egypt’s economy, which relies heavily on canal revenues. The SCA estimated losses of approximately $7 billion for the financial year ending in June 2025.
Lieutenant General Osama Rabie, Chairman of the SCA, expressed cautious optimism about the canal’s recovery. “Consultations with shipping lines and clients show positive indicators for the return of stability in the Red Sea region,” he stated. Rabie expects traffic through the Suez Canal to gradually return to normal by late March, with a full recovery anticipated by mid-2025, provided the Gaza ceasefire holds.
The SCA has been proactive in mitigating the impact of the crisis on its customers. Rabie highlighted efforts to maintain effective communication with shipping lines, stabilize pricing policies, and introduce new maritime and logistical services. These include ship maintenance, maritime rescue, pollution control, and fuel refueling, all aimed at ensuring the canal remains an attractive option for global trade.
