SUEZ CANAL: AFTER A DARK YEAR, 2025 COULD MARK THE START OF A REVIVAL

The Suez Canal, a vital artery for global maritime trade, experienced an unprecedented crisis in 2024. Due to repeated attacks by Houthi rebels on ships in the Red Sea, traffic fell by 60%. However, despite the colossal economic losses, Egypt continues to believe in recovery, thanks to extensive expansion work aimed at reinforcing the canal’s strategic role.

2024, A DISASTROUS YEAR FOR EGYPT

While the canal itself remains secure, the Red Sea has become a minefield for major shipping companies. Maersk, one of the giants of the sector, has decided to suspend the use of the canal for its largest vessels, and it’s not the only one. Large container ships have disappeared, replaced by smaller vessels, often dedicated to regional transport.

This situation affects not only the canal’s revenues, with a shortfall of 7 billion dollars by 2024 for Egypt, but also the activity of its ports, which are seeing their traffic plummet. For the country, this double penalty is accompanied by considerable additional logistical costs.

CANAL WORK, A GAMBLE FOR THE FUTURE

Faced with this crisis, Egypt is pursuing an ambitious project to modernize the canal. The work, estimated to cost $8 billion, includes the widening of strategic sections, such as the Great Bitter Lake zone, and the creation of a new 10 km parallel lane.

The aim is to increase the canal’s capacity to 85 ships a day, compared with 50 at present, and to improve traffic flow. They are also designed to avoid incidents such as Ever Given, which blocked the canal for six days in 2021.

At a time when the war between Israel and the Gaza Strip seems to be coming to an end, this could mean fewer rebel attacks and improved security in the Red Sea. If these conditions are confirmed, maritime traffic could once again flow smoothly, restoring the canal’s strategic role in world trade.