The Suez Canal Authority is ramping up its marketing initiatives to attract ships back to the vital shipping route, following a challenging year in 2024. In a concerted effort, the authority is emphasizing new opportunities and offering financial incentives to encourage vessels to transit the canal.
The Suez Canal is a crucial source of foreign currency and revenue for Egypt. Recent reports from the central bank indicated that canal revenues in the fourth quarter plummeted, generating just over $880 million compared to $2.4 billion during the same period in 2023. For the entirety of 2024, earnings from the canal totaled approximately $4 billion, a significant drop from the record $10.3 billion achieved in 2023.
At a meeting with representatives from 25 major shipping lines and agencies, Lieutenant General Osama Rabie, Chairman of the Suez Canal Authority, urged shipping companies to reevaluate their schedules and consider gradually resuming vessel transits through the canal.
The authority has described recent improvements in the security situation in the Red Sea as “a good sign” that could help restore navigation in the region. It has begun outreach to clients, including major shipping lines, to discuss how these positive developments can enhance freedom of navigation.
Rabie emphasized the authority’s commitment to adapt to rapid changes in the maritime transport industry and to address current challenges in the Red Sea effectively. He confirmed that the Suez Canal Authority is moving forward with a proposal approved by President Abdel Fattah al-Sisi to offer financial incentives.
Starting May 15, the authority will provide a 15% discount on transit fees for containerships with a net tonnage of 130,000 tons or more. This offer, applicable to both laden and empty vessels, will last for 90 days.
The authority reported that vessel traffic is beginning to return, with 166 ships transiting the canal in March. However, this number remains significantly lower than the peak of over 60 ships per day, which included a record of 89 ships in a single day in August 2022.
CMA CGM has emerged as the leading carrier by net tonnage during the first four months of 2025, accounting for 19% of the total tonnage transiting the canal. The company expressed its intention to increase its usage of the Suez Canal, noting that about a quarter of its fleet transited the canal in 2024.
Despite these developments, many carriers are adopting a cautious approach regarding a return to Suez routes. Maersk CEO Vincent Clerc indicated that disruptions might persist throughout most of the year and deemed it “irresponsible” to hastily resume operations in the Suez, citing safety concerns and operational adjustments.
In response, the Suez Canal Authority reassured the industry that it is prepared to consolidate efforts to ensure freedom of navigation in the Red Sea.
