Egypt’s Suez Canal Authority chairman, Osama Rabei, announced on Sunday that since the beginning of February, 47 ships have been rerouted from the Cape of Good Hope to the Suez Canal.
According to Reuters, despite the disruptions caused by the ongoing crisis in the Red Sea, Rabei emphasized earlier this month that there is no sustainable alternative route to the canal. He also highlighted positive signs indicating a return to stability in the region.
Previously, Osama Rabie, had projected that traffic through the waterway will gradually return to normal by late March 2025, with full recovery expected by mid-year, contingent on the stability of the Gaza ceasefire.
Vessels diverted from the Suez Canal due to security concerns in the Red Sea, primarily caused by attacks from Iran-backed Houthi militants targeting ships in the region since November 2023. These attacks forced vessels to reroute around the Cape of Good Hope, bypassing the canal to avoid the heightened risks in the area.
The diversion significantly disrupted global shipping, as the Suez Canal was one of the world’s most vital trade routes, offering the shortest link between Europe and Asia. The rerouting of ships around Africa not only increased shipping times but also led to higher fuel and operational costs, contributing to inflation in global trade.
The disruption had a particularly severe impact on Egypt’s economy, with the country facing an estimated $6 billion in lost revenue from the Suez Canal in 2024 alone.
