According to the SCA's statement, Rabie pointed out that the unprecedented security tensions in the Red Sea have negatively impacted navigation rates through the canal, as many shipping lines were forced to reroute via the Cape of Good Hope.
The SCA chief noted that this impact extended to the entire maritime transport industry, which has suffered from longer sailing durations, increased operational costs per voyage, and the consequent adverse effects on inflation rates for end consumers.
Crisis management
Rabie said the SCA has dealt flexibly with the crisis by maintaining direct and effective communication with shipping lines to discuss adjusting their sailing schedules and potentially resuming gradual vessel transits through the canal.
He highlighted that the SCA recently announced a 90-day 15 percent discount on transit fees for container ships with a net tonnage of 130,000 tons or more, loaded or empty.
A move that Rabie said aims to share the burden with shipping companies and encourage them to include the Suez Canal in their sailing schedules.
Furthermore, the SCA chief stressed that the Red Sea crisis has definitively proven that the Suez Canal is indispensable because it uniquely balances time efficiency and cost savings, and provides essential maritime and logistical services that the Cape of Good Hope route does not offer.
Significant losses
On Friday, Minister of Foreign Affairs Badr Abdelatty said regional escalation since 2023 had repercussions on the freedom of navigation in the Red Sea and the daily passage of vessels through the Suez Canal.
In an article in the British maritime publication Lloyd's List titled "Restoring Red Sea Security: a Welcomed Development in a Troubled Region," Abdelatty noted that Egypt suffered the most from this escalation.
"Egypt was the most severely impacted, losing approximately $800 million of monthly revenue from the Suez Canal, with a total aggregate amount of $8 billion, since the beginning of Israel's war on Gaza," he said.
Abdelatty noted that the events in the Red Sea prove that ensuring maritime security is essential for guaranteeing the flow of global supply chains.
"If these events revealed anything, they emphasised the criticality of maritime navigation as a key pillar to regional security," he added.
Moreover, Abdealtty stressed the need to address the root cause of regional escalation to maintain stability in the Red Sea.
Yemen ceasefire
The Egyptian FM further noted that the recent ceasefire deal in Yemen with the US, mediated by Oman, constitutes a constructive development for regional peace and stability.
"It offers a promising step toward de-escalation, while simultaneously contributing to the broader objective of securing vital maritime corridors," Abdelatty noted.
He said this deal should ease tensions, reassure global shipping lines, and support the steady flow of international trade through the Red Sea and the Suez Canal.
"This progress not only advances the cause of peace but also reinforces international confidence in the security and resilience of global supply chains," he added.
Abdelatty emphasised that vessels can now navigate with greater confidence. This would allow for smoother, faster, and more cost-effective goods transport globally.
"The agreement is a reminder that peaceful settlement of disputes, even in small steps, ripples outward to benefit millions, reinforcing the delicate web of trade that binds our global economy together," he wrote.
Suez Canal significance
Abdelatty said that throughout its history, the canal route stood as a lifeline for international trade.
He said the Suez Canal bridges continents and shortens shipping routes by almost 8,900 km, bringing distant markets within reach. "This efficiency reduces costs, lowers emissions, and strengthens economic interdependence worldwide," he added.
In conclusion, Abdelatty stressed that Egypt will continue efforts to achieve a permanent ceasefire in Gaza and continue advocating the Red Sea as a vital route for global navigation and trade.
Since Israel began its war on Gaza in October 2023, the Houthis of Yemen began targeting Israeli-linked ships in the Red Sea, disrupting maritime traffic and forcing global shipping companies to reroute their vessels to the much longer Cape of Good Hope route.
The Suez Canal links the Red Sea to the Mediterranean and handles 12 percent of global trade. Along with tourism and remittances, the canal is among the key sources of Egypt's foreign currency.
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