The Suez Canal Authority (SCA) has reported a modest recovery in shipping traffic, with 47 vessels opting to use the waterway since the beginning of February.
This development comes as a relative lull in attacks by Yemeni Houthi rebels in the Red Sea, following a ceasefire between Israel and Hamas, has encouraged some shipping companies to return to the crucial trade route.
According to SCA chief Osama Rabie, these ships have chosen the Suez Canal over the significantly longer and costlier route around the Cape of Good Hope at the southern tip of Africa.
“Consultations with shipping lines and clients show positive indicators for the return of stability in the Red Sea region,” Rabie stated on Sunday.
The Red Sea had become a perilous passage for commercial vessels since late 2023, when Iran-backed Houthi fighters in Yemen began targeting ships in solidarity with Hamas.
This disruption forced numerous global shipping firms to divert their routes, leading to a substantial decline in Suez Canal revenue, a vital source of income for Egypt.
The SCA reported a 60% drop in receipts, with projected losses reaching approximately $7 billion for the fiscal year ending in June.
Rabie had previously expressed optimism that Suez Canal traffic would gradually normalize by late March and fully recover by mid-year, contingent on the continued stability of the Gaza ceasefire.
The recent increase in vessel traffic offers a glimmer of hope for the canal’s recovery, though the situation remains dependent on the volatile geopolitical landscape in the region.
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