CAIRO — The Suez Canal’s recovery is gaining momentum as Maersk restores more scheduled container services through the Red Sea, adding to signs that major carriers are gradually shifting Asia-Europe traffic back from the longer route around Africa.
More significant than individual vessel crossings is the return of scheduled liner services. Maersk and Hapag-Lloyd have restored several Gemini Cooperation services through Suez this summer, while Maersk has separately returned other routes to the corridor as security conditions improved.
The latest sign came on Saturday, when the 17,200-TEU BANGKOK MAERSK, operating on Maersk’s AE7 Asia-Europe service, made its first Suez transit on a voyage from Italy to Singapore, according to the Suez Canal Authority.
Maersk chief executive Vincent Clerc said this month that about one-third of the company’s normal Red Sea traffic had returned to the route, covering four of its 13 services. The company has nevertheless maintained a gradual approach to restoring operations because of continuing security risks.
The economic incentive is substantial. The captain of BANGKOK MAERSK said using Suez rather than sailing around the Cape of Good Hope cuts about 14 days from the vessel’s current voyage, reducing transit time and operating costs.
A wider return to Suez would also increase effective container-shipping capacity by shortening voyage times and reducing the number of vessel-days required to move cargo between Asia and Europe, potentially putting downward pressure on freight rates and carrier margins.
For Egypt, a sustained recovery would help rebuild one of the country’s most important sources of foreign-currency earnings. Suez Canal revenues fell sharply after Red Sea attacks prompted carriers to divert around Africa, depriving Egypt of billions of dollars in receipts and adding pressure to its external accounts.
The recovery nevertheless remains incomplete. Shipping companies retain the flexibility to reverse routing decisions if Red Sea security deteriorates. The key test will therefore be whether Maersk and other major carriers continue restoring regular scheduled services, rather than merely sending individual vessels through the canal.
Related news:
Egypt, Montenegro Sign Maritime Pact to Deepen Trade and Strategic Cooperation
Egypt develops an integrated maritime framework to expand regional trade role
Read also:
The City According to Its Digital Footprint
Beyond Thanaweya Amma: Egypt’s Baccalaureate Enters Its Next Test
