The head of the Suez Canal Authority in Egypt, Lieutenant General Osama Rabie, revealed the negative repercussions of the current crisis taking place in the region on the sustainability of global supply chains and the rates of ship transit through the canal, stressing the decline in supplies and the number of ships passing through this year.
During his participation in the activities of the discussion session “Resilience of Logistics Services in the Face of Turbulence in the Red Sea” within the activities of the Global Logistics Forum organized by the Saudi Ministry of Transport and Logistics from October 12 to 14 at the King Abdullah Financial Center in Riyadh, he confirmed that the canal is operating efficiently. Around the clock, it receives various types and tonnages of ships, despite the current challenges in the Red Sea region.
Rabie explained that the current conditions in the Red Sea region are an “exceptional crisis” that the region has not witnessed before, with negative impacts and repercussions on the sustainability of global supply chains, the rates of ship transit through the canal, and the flow of goods.
He pointed out the decline recorded in navigation statistics on the canal, as the number of ships passing through decreased from 25,887 during the fiscal year 2022/2023 to 20,148 ships during the fiscal year 2023/2024. Revenues also declined from $9.4 billion during the fiscal year 2022/2023 to $7.2 billion during 2023. / 2024.
The head of the authority pointed out that indicators since last November 19 have monitored more than 6,600 ships taking the Cape of Good Hope route as a result of the current tensions in the region.
Rabie stressed that the Suez Canal has been working since the beginning of the crisis on taking a set of measures and procedures that would reduce the effects of the crisis and maintain the safe and easy flow of navigation in the canal by opening direct lines of communication with all shipping lines, unions and ship operators, and holding periodic meetings with the Maritime Organization. International, the International Chamber of Shipping and other actors in the maritime community.
The Chairman of the Authority pointed out that the Suez Canal has developed a group of navigational services to serve its customers in normal and exceptional circumstances, including ship maintenance and repair services and pollution control, as well as refueling services, solid waste removal, marine ambulance service and the replacement of marine crews using the Authority’s launches, along with entering into… Partnerships to implement new investments that achieve economic returns, such as port development projects and the establishment of container docks in cooperation with the Ministry of Transport.
Last updated: October 14, 2024 – 12:30
Suggest a correction