Suez Canal Traffic Up 10%: Major Shipping Lines Return to Route
Suez Canal Traffic Up 10%: Major Shipping Lines Return to Route
The Suez Canal is witnessing the strongest vessel traffic recovery in two years as tensions in the Red Sea and Bab el-Mandeb region gradually ease. The Suez Canal Authority (SCA) reported that October achieved the highest monthly transit rate since the end of 2023.
In October, 229 vessels transited the canal. When evaluating July through October together, total tonnage showed a 10% annual increase. While vessel count growth was only 2%, the data indicates that larger, more heavily-laden vessels are returning to the canal. Over this four-month period, transiting vessel numbers exceeded 4,400.
Major shipping lines return to the route
SCA Chairman Admiral Ossama Rabiee convened a meeting with 20 major shipping lines and agents to discuss the recovery at Suez. The objectives:
Recoordinate transit schedules and tariffs
Invite lines to conduct "trial runs"
Rebuild confidence in the Suez route
One of the most notable returns came from CMA CGM. The line confirmed that two of its 17,000 TEU-capacity vessels transited the canal under escort by European Union naval forces. CMA CGM plans to increase transit frequency in the coming months.
MSC, Hapag-Lloyd, COSCO, and Evergreen and other major operators reported closely monitoring the region, noting that transits will accelerate as security conditions stabilize. However, some lines remain cautious about deploying their largest vessels—particularly 23,000 TEU+ ultra-large class ships—to the region.
SCA's strategy: Rebuilding confidence
Rabiee emphasized that the Suez Canal carries 12% of global trade and is a vital artery for world commerce. Following the disruptions of the past two years, the primary goal is to convey to shipping lines that "Suez is secure and predictable again."
During the crisis period, many carriers rerouted their vessels around the Cape of Good Hope, a shift that significantly increased both costs and transit times. Since canal revenues are among Egypt's most critical foreign exchange sources, recovery is of paramount importance.
The major hurdle: insurance costs remain high
Abdel Aziz Nabil, a representative of Inchcape Shipping Agency attending the meeting, stated that maritime insurance costs remain the region's biggest obstacle.
Insurance premiums, particularly due to Red Sea security risks, continue to be elevated:
This situation makes the return decision difficult for many lines
Full normalization is not expected until insurance costs decline
Some lines continue to transit under naval escort on security grounds.
Overall outlook: Gradual improvement
As the fourth quarter of 2025 approaches, the SCA's message is clear:
Recovery has begun
Tonnage is growing
Larger vessels are returning to Suez
However, full recovery will take time due to insurance and geopolitical risks
The SCA is supporting carriers with regular consultative meetings to help them revise routing plans, while sharing transit data with the industry through a "monthly rapid feedback" model.
For now, the trend is positive; however, the Suez Canal's complete return to pre-crisis traffic levels will depend on insurance pricing, regional stability, and carrier risk appetite.
Key Points:
229 vessels transited in October; July–October combined tonnage increased 10%.
Major lines like CMA CGM and MSC are conducting "trial returns."
The SCA is working to rebuild confidence through regular meetings.
The biggest obstacle: elevated Red Sea insurance costs remain.
Recovery has started, but full normalization will take time.
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News Link: https://www.supplychain247.com/article/suez-canal-traffic-rebound-shipping-lines-return
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Author: SedatOnat.com
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