Suez Canal Chief Urges Maersk to Reconsider Red Sea Route Amid Stability Signs

The Suez Canal Authority (SCA) Chairman Osama Rabie has urged AP Moller-Maersk to reassess its shipping routes through the Red Sea, citing emerging signs of stability in the region, according to an official SCA statement.

Key Developments:

• Rabie’s remarks came during a meeting with Maersk’s CEO and senior executives, though the exact date was not disclosed.
• Global shipping disruptions have led major companies, including Maersk, to reroute vessels around Africa’s Cape of Good Hope, avoiding the Red Sea due to security concerns.

Economic Impact on Egypt:

• Egyptian President Abdel Fattah al-Sisi previously stated that disruptions in the Suez Canal had resulted in an estimated revenue loss of $7 billion in 2024.

Maersk’s Position:

• Despite recent Houthi claims of scaling back attacks, Maersk remains cautious and continues to divert vessels away from the Gulf of Aden and the Red Sea.
• The Houthis have carried out over 100 attacks since November 2023, sinking two ships, seizing another, and killing at least four seafarers.