SUEZ CANAL: TOWARDS A RESUMPTION OF TRAFFIC?

Now that freight ships have been passing through the Cape of Good Hope for a year and a half, the prospect of a resumption of traffic through the Suez Canal has never been so close. It should be remembered that diverting ships significantly lengthens transit times, modifies shipping routes and increases fares.

CEASEFIRE AGREEMENT BETWEEN THE UNITED STATES AND YEMEN

Since the end of 2023, shipping companies have been diverting their ships via the Cape of Good Hope to avoid any attacks from the Houthi rebels.

The United States and the Houthis agreed a ceasefire on 7 May. The Trump administration has declared that it will halt US strikes in Yemen and that the Houthi rebels will cease their attacks on US ships in the Red Sea and the Bab-Al-Mandeb Strait, although they will continue to target Israeli ships.

REDUCING THE COST OF PASSAGE

To encourage the return of maritime transport, Egypt has announced a 15% reduction in tariffs for a period of 3 months for all large container ships (with a minimum net tonnage of 130,000 tons loaded or empty) passing through the Suez Canal. This reduction is also intended to help shipowners cope with the increase in insurance premiums, as the Red Sea has been a high-risk area since the start of the conflict.

This reduction has been in force since 15 May for 90 days and is aimed at shipowners who are still reluctant to use this route as long as the ceasefire remains fragile.

While underlining the interest for shipping companies in using the Suez Canal again, redeployment is not planned in the short term. Reorganising shipping routes and reorienting the fleet of ships is an action that can only be effective if the safety of the passage is guaranteed.

The passage through the Suez Canal is therefore still uncertain, but it would appear that the situation is improving in an encouraging way. Our teams will be sure to keep you informed of any changes.