Suez Canal prepared to operate at full capacity as global trade stabilizes and regional tensions cool

Cairo – January 22, 2025: On Tuesday, Osama Rabie, Chairman of the Suez Canal Authority (SCA), announced that the canal is fully prepared to operate at maximum capacity, with major shipping lines returning as global trade begins to stabilize.

The update followed a meeting between Rabie and Arsenio Dominguez, Secretary-General of the International Maritime Organization (IMO), during which Rabie highlighted the resumption of canal operations after improved stability in the Red Sea and Bab al-Mandab regions, areas that had previously disrupted shipping routes.

The meeting highlighted efforts to restore maritime traffic through the canal, a vital global trade route. The meeting also emphasized the strong collaboration between the SCA and the IMO to support the safe resumption of maritime activity.

This follows a challenging period for the Suez Canal, during which tensions in the Red Sea led to a significant drop in the number of vessels transiting the canal.

During the first quarter of FY2024/2025, the number of ships passing through the Suez Canal plummeted by 51 percent compared to the same period the previous year. Revenues also took a severe hit, falling by 61.2 percent, down to $931.2 million from $2.4 billion in Q1 FY2023/2024.

The decline in transit numbers and revenue continued through 2024, with annual revenues falling to $4 billion, a staggering 60.7 percent decrease from $10.2 billion in 2023. The number of ships transiting the canal dropped from 26,400 in 2023 to about 13,200 in 2024, and daily traffic dropped from 75-80 vessels to just 32-35.

Despite these challenges, Rabie reiterated the SCA's commitment to delivering seamless maritime services, continually evolving to meet industry demands, highlighting enhancements to the canal including the introduction of services such as ship repair, maintenance, maritime ambulance services, fueling, solid waste collection, disposal, and crew change services.

Dominguez expressed confidence in the canal’s recovery and urged shipping companies to adjust their sailing schedules in preparation for the gradual return of traffic through the Suez Canal.

He emphasized the canal’s role as a crucial global trade artery and welcomed the ongoing stabilization in the Red Sea region, which would help restore global supply chains affected by the disruptions.

Rabie also announced the upcoming operational phase of the Suez Canal expansion project in the Small Bitter Lakes, set to begin in the first quarter of 2025. This expansion, which will include a 10-kilometer stretch of double canal from kilometre 122 to kilometre 132, is expected to enhance the canal’s capacity and improve safety measures, allowing for the passage of six to eight vessels at a time, and boosting the canal's ability to handle emergencies.