29 May
Egypt is signaling a turning point in Red Sea security, urging global shipping operators to resume using the Suez Canal after months of disruption. Foreign Minister Badr Abdelatty emphasized in Lloyd’s List that a ceasefire in Yemen, brokered by Oman, has improved conditions for maritime safety. “With the recent agreement, vessels can now navigate with greater confidence,” Abdelatty stated, highlighting Egypt’s efforts to restore faith in the route and reverse the country’s staggering $800 million monthly revenue losses since Houthi attacks began.
Despite Egypt’s optimism, actual shipping traffic has seen minimal recovery. The Suez Canal Authority recently offered a 15% discount on transit fees and held high-level talks with industry leaders, but vessel counts remain 58% below April 2023 figures. Abdelatty insists the ceasefire should provide “reassurance to global shipping stakeholders,” enabling more reliable trade between Africa, Europe, and Asia. Still, only a few shipowners have begun tentative voyages through the Red Sea, as caution lingers in the industry.
Security analysts remain wary. The Houthis continue to threaten vessels linked to Israel, declaring bans on maritime navigation to and from Haifa. Maersk CEO Vincent Clerc and Hapag-Lloyd’s Rolf Habben both expressed skepticism, expecting continued rerouting around Africa for the foreseeable future. As Habben noted, any return would be “gradual, timed over a three- to six-month period.”
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