In 2024, the Suez Canal faced significant challenges that led to reduced traffic and declining revenues, yet it is now poised for a full resumption of operations as global trade stabilizes. This positive outlook was confirmed by Osama Raby, Chairman of the Suez Canal Authority, following his meeting with Arsenio Domínguez, Secretary General of the International Maritime Organization. The resumption comes after tensions in the Red Sea and Bab el-Mandeb Strait regions, which had previously disrupted critical shipping lanes, have started to ease.
The Suez Canal, one of the world’s busiest and most strategic waterways, had been significantly affected by geopolitical instability. In the first quarter of the 2024/2025 financial year (from July to September 2024), the number of ships passing through the canal plummeted by 51% year-on-year. This decline was mirrored in the canal’s revenues, which fell sharply by 61.2% y/y, reaching only $931.2 million.
Looking at the full year, the Suez Canal faced a 60.7% decrease in revenues in 2024, with the total dropping to $4 billion compared to $10.2 billion in 2023. The number of vessels passing through the canal also saw a dramatic fall from 26,400 vessels in 2023 to just 13,200 vessels in 2024. Daily traffic, which previously ranged between 75-80 vessels, dwindled to around 32-35 vessels per day.
Despite these setbacks, Raby has expressed confidence in the canal's ability to return to its full operational capacity, highlighting significant improvements in the canal's services. The SCA has introduced a variety of services designed to enhance operations, including ship repair, maintenance, marine ambulance services, fueling, and crew change services. These initiatives are part of the authority’s efforts to provide uninterrupted maritime services and adapt to the evolving needs of the shipping industry.
The SCA has also emphasized its commitment to maintaining a high standard of service and supporting the maritime community. The canal’s modernization efforts are a response to shifting global shipping demands and an effort to recover from the turbulent times caused by regional instability.
Arsenio Domínguez, during his meeting with Raby, expressed optimism about the canal's recovery and encouraged shipping companies to adjust their sailing schedules accordingly. With the improving stability in the Red Sea and Bab el-Mandeb Strait, which are critical to global shipping, it is expected that Suez Canal traffic will gradually increase in the coming months.
The Suez Canal plays a vital role in connecting trade routes between Europe, the Middle East, Asia, and beyond, and its recovery is crucial for the smooth flow of global commerce. The canal's resurgence is expected to have far-reaching impacts on global trade, reducing shipping costs and delivery times across several industries. The decision to resume operations at full capacity reflects not only a regional stabilization but also the enduring importance of the Suez Canal in global supply chains.