Tanker Targeted by Houthis Returns to Suez as Canal Seeks More Traffic
The Suez Canal Authority is increasing its efforts to rebuild traffic through the canal highlighting the return to stability in the region. Yesterday, February 3, a tanker targeted by the Houthis eight months ago made its first transit reports the authority as part of its marketing campaign.
The Houthis announced they would honor the Gaza cease-fire reached last month and suspended their attacks on commercial shipping in the Red Sea. While many of the major shipping lines have taken a wait-and-see attitude stressing their focus on security the Suez Canal Authority is anxious to restore traffic.
The Suez Canal is a major source of revenue for Egypt. Reuters is citing a comment from Egyptian President Abdel Fattah al-Sisi saying the diversions of ships from the canal cost Egypt around $7 billion in revenues in 2024.
The tanker Chrysalis (115,867 dwt) made the transit only with ballast on February 3 traveling from Seka, India to the Sidi Kerir oil terminal in Alexandria, Egypt. It was an important moment for the Suez Canal Authority as in July 2024 the Houthis had claimed to heavily damaged the vessel due to its association with Israel. The tanker built in 2010 in South Korea is registered in Liberia and reported to be owned by Turkish interests.
The Houthis claimed to have launched missiles targeting the tanker on July 12, 2024, while it was entering the Red Sea. Later as it transited the Bab el-Mandeb, they reportedly launched drones for a second attack on the tanker.
Additional lanes for two-way traffic recently opened in the southern reaches of the Suez Canal (SCA)
The Suez Canal Authority used the transit to emphasize its messages of the higher cost and increased fuel use to divert around the Cape of Good Hope. They also pointed to the lack of necessary navigation support services for vessels on the route around Africa.
The messages were also part of the authority’s presentation during a conference in Oman and last week when the Chairman and Managing Director of the Suez Canal Authority Admiral Ossama Rabiee met with representatives of the major shipping companies and agencies in Egypt. The authority highlighted that 23 companies participated in the meeting to discuss “the impact of the return of relative stability in the Red Sea and Bab el-Mandab.”
The authority emphasized that it has continued to pursue enhancements while vessels were diverting. This includes the recent opening of the additional two-lane traffic in the southern sections of the canal as well as deepening sections of the waterway from 66 to 72 feet. The additional sections of the canal they report will permit six to eight additional vessels to make the transit each day while the improvements to the waterway are increasing navigation safety and reducing the impact of water and air currents.
Rabiee told the shipping company representatives that the authority was “keen on keeping its flexibility by maintaining its pre-crisis transit pricing policies.” He said it would be extending its rebate programs to support shipping’s return to the Suez Canal. They also highlighted the addition of new services to support shipping. This includes salvage services, water ambulances, pollution control, and expanding the maintenance and bunkering services.