War with Iran disrupts Suez Canal shipping

Concerns are growing in Egypt that the war with Iran could affect traffic through the Suez Canal, one of the country’s main sources of national income, Asharq Al Awsat reported on 13 March.

The canal is one of the world’s busiest maritime routes and carries about 12 percent of global trade. It links shipping lanes between Asia and Europe and has previously been affected by regional security tensions, including incidents in the Red Sea.

International transport specialist Osama Aqil said canal traffic has fallen significantly since the conflict began, with the number of vessels using the route dropping by about half in recent days. He attributed the decline to security risks and rising insurance premiums for ships operating in the region.

Egypt secures ships along the canal and within its territorial waters. However, vessels travelling to and from the waterway must still pass through areas affected by military action in the Gulf and through the Bab el-Mandeb Strait.

The risks have led many shipping companies to divert vessels around the Cape of Good Hope.

Several major shipping companies have suspended the transit of some ships through the canal, including Denmark’s Maersk, France’s CMA CGM and Germany’s Hapag-Lloyd.

Canal traffic had begun to recover from earlier Houthi attacks on commercial vessels in the Red Sea linked to the war in Gaza before the latest disruption caused by the war with Iran.

Aqil warned the disruption to canal traffic could deepen if the conflict continues and that shipping may not immediately return to normal even after hostilities end.

“Shipping companies that divert vessels to the Cape of Good Hope route are likely to sign contracts for the alternative passage,” he said. “Redirecting them back through the canal will take time.”

Suez Canal Authority head Admiral Osama Rabie said the canal remains open and ready to receive ships despite regional tensions. He said the authority has expanded maritime and navigational services and introduced additional activities to support vessels during both routine operations and emergencies.

These include ship maintenance and repair, maritime rescue operations and marine ambulance services. Rabie added that the authority is continuing efforts to modernise its fleet of marine units.

The canal allows ships to travel between Europe and Asia without sailing around the Cape of Good Hope at the southern tip of Africa, shortening journey times for global trade.

Egypt depends heavily on revenue from the canal as a source of foreign currency. A reduction in shipping traffic could reduce government income and place additional strain on the economy.

Asharq Al Awsat, Maghrebi.org