Suez Canal Traffic and Revenues Expected to Fully Normalize by End of 2026
Suez Canal Traffic and Revenues Expected to Fully Normalize by End of 2026
Suez Canal Authority (SCA) Chairman Osama Rabie told Al Arabiya Business in an interview that canal traffic and revenues are expected to return to fully normal levels by the end of 2026. Rabie noted that Maersk's decision to stage a gradual return took shape as a result of six months of uninterrupted communication. Maersk will begin partial transits from December onwards, with the process subsequently ramping up to full capacity.
Rabie emphasized three key factors in restoring stability: the Sharm el-Sheikh peace conference, reassurance messages delivered on October 7 by President Abdel Fattah al-Sisi and U.S. President Donald Trump, and the announcement that Houthis have ceased attacks on transit vessels. These developments are said to have reduced international shipping companies' concerns about safely transiting through the canal.
Rabie noted that Maersk transited 1,180 vessels through the canal in 2023, averaging 80 vessels per month, and said the company's return would significantly boost transit volumes. Similarly, CMA CGM's decision to return fully and continuously would contribute to revenue improvements. Rabie stated that these two major operators' decisions would be incentivizing for other global container shipping companies.
The SCA expects revenues of approximately 4 billion USD for 2025, figures that reflect declines during the crisis period. Rabie projects revenues will reach 2023 levels by the end of 2026, exceeding 10 billion USD. Navigation operations will return to normal more noticeably after the first quarter of 2026, Rabie said, emphasizing that Maersk's vessel numbers reached "extremely limited" levels during the height of the crisis.
Under transit incentives, the 15 percent discount applied to container vessels exceeding 130,000 tons has been extended until March 2026. Efforts are ongoing on additional incentive mechanisms, with advanced-level negotiations underway with global shipping companies. Additionally, the SCA and Maersk signed a comprehensive agreement guaranteeing the full return of the company's fleet to the canal. This agreement is viewed as a strategic milestone following a period in which risks around the Red Sea adversely affected navigation for more than two years.
Rabie stressed that the Suez Canal continues to be the "world's most important shipping corridor" with no viable alternative. Maersk's vessel count transiting the canal in 2023 was recorded at 1,158. The canal is said to have received a daily average of 28 vessels before the pandemic and geopolitical tensions.
Monthly transit performance data shared by Rabie also points to improvement. In October, 1,136 vessels transited; cargo tonnage increased 16 percent during this period, while dollar-denominated revenues rose 15 percent. In November, vessel transits grew 15 percent, cargo tonnage 26 percent, and revenues 27 percent. This data demonstrates that the canal's recovery process has begun and that the 2026 target is grounded in concrete figures.
Suez Canal Authority is an Egyptian state institution responsible for managing all canal infrastructure, establishing transit regulations, and providing navigation services. It also carries out long-term development projects aimed at increasing transit capacity and improving service quality.
Key Takeaways:
The SCA expects traffic and revenues to fully normalize by the end of 2026.
Maersk and CMA CGM's return decisions will significantly boost transit volumes.
Current revenue expectation is 4 billion USD; target is above 10 billion USD by end of 2026.
15 percent container vessel discounts extended until March 2026.
October and November transit data show recovery has begun.
The canal maintains its position as the world's most critical trade corridor.
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News Link: https://en.portnews.ru/news/385071/
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Author: SedatOnat.com
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