Suez Canal seeks Maersk initiative to restore trade flows through key waterway

Egypt’s Suez Canal Authority (SCA) has called on AP Moller-Maersk A/S to take the initiative and begin a phased return to using the waterway, as security conditions in the Red Sea show signs of improvement.

In a high-level meeting with Maersk executives in Ismailia on Wednesday, SCA Chairman Osama Rabie said the authority is ready to accommodate the gradual resumption of transits and is offering incentives to facilitate the shift. Container ships with a net tonnage of 130,000 or more will be granted a 15 per cent discount, Rabie said.

“The current conditions are favourable for making more positive decisions regarding returning to the canal,” Rabie told the delegation, which included Maersk officials from regions including Europe, Asia, and the Americas.

Maersk, one of the world’s largest shipping companies, has rerouted vessels away from the Red Sea since late 2023 due to Houthi-led attacks. While the company has yet to commit to a firm timeline for resuming Suez crossings, executives said they are closely watching developments.

The company is eager to return to sailing through the Suez Canal and is monitoring the security situation in the Red Sea hour by hour, said Camilla Jain Holtse, Maersk’s vice president and head of public policy and regulatory affairs.

The Suez Canal remains a critical artery for global trade, handling roughly 12 per cent of worldwide shipping volumes. The ongoing disruptions have strained global supply chains, driving up costs and prompting widespread detours around Africa.

Maersk applauds Suez crisis handling

Representatives from Maersk praised the SCA’s crisis management and called the discount scheme “a positive step.” Holst said the century-old partnership between Egypt and Maersk continues to be “strategic and essential.”

Hany El Nady, chief group representative for AP Moeller-Maersk in the Middle East and North Africa, said the Canal remains the group’s preferred route and that recent signs of easing tensions in the Red Sea are being closely monitored by the company’s strategic teams.

Doug Morgante, vice president of North American government relations, emphasised that ensuring crew and vessel safety is a prerequisite for resuming transits. He said the group is hopeful for a full restoration of calm in the region, which is critical before committing to route changes.

Jens Eskelund, chief representative for Maersk in Greater China and Northeast Asia, warned that the Red Sea crisis has caused “unprecedented disruptions” to maritime shipping. He commended the SCA’s handling of the crisis and stressed the Canal’s role in maintaining global supply chain resilience.

From South East Asia, René Piil Pedersen, managing director at AP Moller Singapore Pte Ltd, underscored the Canal’s importance as an “irreplaceable artery” for global trade and said a return to normalcy would be a positive step for international commerce.

Danilo de Morais Veras, head of Public Affairs at AP Moeller-Maersk’s Latin America, described the Suez Canal as “one of the world’s most significant infrastructure achievements” and praised the SCA’s strategies and crisis-response mechanisms as a model for effective maritime governance.

Attribution: Amwal Al Ghad English