SCA Chief: Current crisis in Red Sea region calls for consolidated efforts to identify impacts on global supply chains

CAIRO – 29 January 2024: Egyptian Chairman of the Suez Canal Authority Ossama Rabie has met today, via video conference, with Mr. Guy Platten, Secretary-General of the International Chamber of Shipping (ICS), and Mr. Neil Roberts, Head of Marine & Aviation at Lloyd's Market Association (LMA), to discuss the developments of the current situation in the Red Sea and Bab El-Mandeb region as well as their impact on the sustainability of global supply chains.

The meeting was also attended by Mr. Sherine El-Naggar, Chairman of Naggar Shipping Group, and Ms. Kiran Khosla, Principal Legal Director of the International Chamber of Shipping (ICS) and the Secretary of the ICS Maritime Law Committee and the ICS Insurance Committee.

This meeting comes as a continuation of the SCA’s efforts to open direct communication channels with the international maritime community through holding periodical meetings with senior executives of various international maritime organization and shipping lines.

At the outset, H.E Admiral Ossama Rabie stressed the SCA's keenness to promote cooperation with all the international maritime organizations and institutions, and discuss with its clients the repercussions of the current crisis as well as to present insights on facing the different challenges linked to that crisis to minimize its impact on global trade.

H.E. has also pointed out that the current crisis requires the consolidation of all efforts and the exchange of viewpoints on its repercussions as well as identify its tangible impacts on global supply chains and all the sectors related to maritime transportation; including the maritime insurance sector which is witnessing an increase in insurance cost for vessels passing through the Red Sea and Bab El-Mandeb region.

On his part, Mr. Guy Platten has expressed his appreciation of the SCA's efforts that are exerted towards achieving effective communication with all the key players in the maritime community. He emphasized the positive impact of communication on understanding the current conditions in the maritime transport market as well as the consecutive variables it witnesses.

The Secretary General of the International Chamber of Shipping (ICS) has asserted the continuation of discussions with the SCA as a key partner and an invaluable maritime route for the stability and sustainability of global supply chains. He has also expressed his hopes for the end of the crisis to come as soon as possible due to the challenges it imposes on the sustainability of global supply chains.

While Mr. Neil Roberts has clarified that the ongoing tensions in the Red Sea region impose numerous concerns among ship owners and shipping lines with regards to the safety of the vessels and crews which eventually leads to increased maritime insurance costs for vessels passing through. He has also stressed that for matters to go back to normal, there needs to be a de-escalation of the situation and a recovery of the international maritime community's confidence.

On her part, Ms. Kiran Khosla has emphasized that maritime insurance prices are flexible and susceptible to change, and they are calculated according to the contextual conditions. She has pointed out that the security concern is at the forefront of the current scene in the Red Sea and Bab El-Mandeb region where the safety of vessels and crews remain the main concern among ship owners and consequently the maritime insurance value for vessels passing through this region swell.