Suez Canal Says Maersk Will Return in December, But Will It?
The Suez Canal Authority announced during a joint press conference with Maersk CEO Vincent Clerc that the two organizations had signed a new strategic partnership agreement and that Maersk would be returned to the Suez Canal routes. The SCA said the return would come in December, while Maersk later reiterated that it will proceed “as soon as conditions allow, with safety of our crew as the top priority.”
Resumption of transits by the major container carriers after nearly two years of diversions around South Africa is a major goal of the Suez Canal Authority. The group has been meeting with the major operators, highlighting the advantages of the route, and advocating for a return. They highlighted the adoption of a package of “flexible pricing policies,” which includes a 15 percent discount for containerships over 130,000 tons.
The authority emphasizes that the peace agreements and the subsequent vow by the Houthis to restore free passage are enhancing stability in the Red Sea and Bab el-Mandeb. It says this stability is paving the way for a resumption of navigation to its normal levels.
The Suez Canal Authority asserted that Maersk would resume transits next month and called this a step in the right direction. It also predicted that Maersk’s return would be followed by many shipping lines for passage through the Red Sea and the Suez Canal.
Clerc was more trepiditious in his statements, according to the press reports, and Maersk reiterated in a follow-up statement that the return would start when “conditions allow.” The company has also said it would normalize transits over time. It said given the progress, it would take steps to resume the routes, but that no firm date had yet been established.
The Suez Canal Authority had previously highlighted that CMA CGM had also sent larger vessels through the canal early in November. The French carrier had maintained some transits with escorts from the EUNAVFOR Operation Aspides and recently sent the CMA CGM Benjamin Franklin and CMA CGM Jules Verne through the Suez Canal. The authority said today that CMA CGM has taken the decision for a full return and would also start more transits in December.
It highlighted that in 2023, Maersk had made 1,158 transits with a total net cargo of 127 million tons. Restoring the trade is critical to Egypt as it is a key source of revenue for the country. In addition to Maersk’s resumption of transits, they noted that they were exploring new areas of cooperation, including ship scrapping, container manufacturing and repair, shipyard development, and logistics services. Maersk has committed to large investments in the port operations in Egypt with the expansion of its terminal operations.
The Suez Canal Authority reported today that ships are already increasingly returning to the canal. In October, it said 1,136 ships made the transit, and while the vessel number was equal to a year earlier, cargo tonnage was up by 7 million tons to 47.1 million tons in October. Further, they reported that in November, 1,156 ships have already made the transit with 48.5 million tons of cargo. It is forecasting a steady increase in the coming months. The authority said it will be holding “intensive discussions” with all shipping lines to discuss amendments to sailing schedules and the timings for ships’ return to passage once again through the Red Sea.