Shipping volume through Suez Canal route drops

Shipping volume in the Suez Canal dropped 28 percent year on year in the last 10 days ending Jan. 2, official data has revealed according to international media reports.

Latest figures released by the International Monetary Fund’s Port Watch platform show that disruptions in the Red Sea have increased in recent weeks, putting vital trade flows at risk.
On the other hand, the data further disclosed that the shipping volume in the Cape of Good Hope has surged 67 percent during the same period.

This is mainly attributed to the fact that last month’s attacks on ships in the Red Sea have caused disruptions in the maritime trade as leading global freight firms rerouted around the Cape of Good Hope to avoid the Suez Canal.

In mid-December, major freight companies — including MSC and Denmark’s Maersk— initiated this rerouting strategy around Africa, incurring additional costs and delays, as anticipated by industry analysts.

In a statement, Chairman Osama Rabea said the authority is “closely following the consequences of current tensions in the Red Sea on the traffic in the canal.”

However, toward the end of the December 2023, there were indications of a return to the Suez Canal route, with Maersk announcing the scheduling of several dozen container vessels for travel via the waterway and the Red Sea in the upcoming weeks

Maersk also disclosed preparations for a return to the Red Sea for both eastbound and westbound journeys. Concurrently, France’s CMA CGM announced an increase in the number of vessels traveling through the Suez Canal.

About 15 percent of world shipping traffic transits the waterway, serving as the shortest shipping route between Europe and Asia. Additionally, the Suez Canal holds significance as a crucial source of foreign currency for Egypt.