A.P. Moller–Maersk, the world’s largest container shipping company, will begin routing vessels back through Egypt’s Suez Canal starting in December, according to a joint statement with the Suez Canal Authority released Tuesday. The company did not set a date for full resumption.
Maersk’s decision follows a year-long rerouting of its fleet via the Cape of Good Hope, a costly detour undertaken by most global shippers. This choice was usually to sidestep the naval embargo imposed by the resistance group Ansar Allah on vessels, which are passing through the Red Sea, involved in trade with Israel during its genocide on Gaza.
Suez Canal Authority (SCA) chairman Osama Rabie said Maersk’s return represents “a step in the right direction” and a validation of the canal as the shortest, fastest, and safest route connecting East and West—a key artery for global supply chains.
The Suez Canal handles approximately 10% of global trade. Egypt relies heavily on toll revenues from the waterway as a vital source of foreign currency.
Rabie reportedly noted that traffic through the canal has begun to rebound. In October, 1,136 vessels transited the canal with a total cargo of 47.1 million tons and revenues of $372.9 million, compared to the same number of ships carrying 40.4 million tons and $322.1 million in October 2024.
In November, 1,156 ships passed through with 48.5 million tons of cargo, generating $383.4 million, up from 1,000 vessels and $300.6 million during the same month last year.
To attract shippers, the SCA introduced a 15% discount for container ships exceeding 130,000 tons in gross tonnage. Earlier in May, the authority also announced temporary cuts of 12–15% on transit fees for select carriers.
Maersk CEO Vincent Clerc reiterated the canal’s strategic importance, calling it the most efficient corridor for east–west trade. He said the company welcomed the de-escalation in Red Sea tensions and cited the October peace agreement signed in Sharm el-Sheikh as pivotal.
Clerc added that the security improvements and recent strategic partnership agreements laid the groundwork for Maersk’s gradual return to the route, suggesting a complete resumption is likely in the near term.
In May, Rabie had personally urged Maersk to revise its sailing schedules in response to the improved security outlook in the Red Sea region at the time.
Egypt’s Central Bank recently reported a 61.2% drop in Suez Canal revenues in Q1 of the 2024–25 fiscal year—down to $931.2 million from $2.4 billion in the same period the year prior. The downturn followed military actions by the Ansar Allah resistance group on Red Sea shipping vessels linked to Israel, in what the group said was retaliation for the ongoing Israeli genocide in Gaza.
