Suez Canal Sees First Signs of Recovery

Suez Canal (Photo: Jonathan Boonzaier / Phaata)

The latest shipping data points to an uptick in transits through the Suez Canal, as Egyptian authorities express hope that the recent ceasefire announced by Houthi forces will lead to a full return of normal trade activities on this vital artery connecting Asia and Europe.

According to data from Clarksons, the Suez Canal saw an average of approximately 244 vessel transits of all types per week in October. This figure rose to 269 vessels per week in November. These latest numbers represent an improvement over the average of 229 transits per week recorded during the first nine months of 2025. However, current traffic levels remain significantly below the 495-500 weekly transits recorded prior to the onset of diversions in late 2023.

Last week, Houthi forces officially announced a suspension of maritime attacks following the ceasefire between Israel and Hamas. Notably, today marks exactly two years since the Houthi seizure of the Galaxy Leader, which ignited the Red Sea crisis.

During a visit to a CMA CGM container vessel transiting the canal last weekend, Admiral Ossama Rabie, Chairman of the Suez Canal Authority (SCA), stated: “The restoration of stability in the Red Sea requires shipping lines to rethink navigation schedules and return to transiting through Bab El-Mandab and the Suez Canal.”

Alongside CMA CGM, other global carriers are actively considering resuming Red Sea transits, with reports suggesting Maersk is preparing a significant announcement on the matter. Earlier this month, the SCA also announced plans to hold meetings with major shipping lines to encourage their return.

Historically, Suez Canal transit fees contribute approximately 1.5-2% to Egypt's GDP. Prior to the war in Gaza, the waterway generated over $8.5 billion in annual revenue, a figure that plummeted by more than 50% last year.

Shipping analysts at Jefferies, a U.S. investment bank, predict that if peace holds in Gaza, it is likely that many operators will return to the route in the first half of 2026.

According to Jefferies' estimates, diversions around the Cape of Good Hope over the past two years have caused a tightening of supply of approximately 10-11% for container vessels, followed by about 2% for both crude and product tankers, 1.5% for LNG and LPG carriers, and 1% for bulk carriers.

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Source: Phaata.com (According to Splash247)

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