Suez Canal Upbeat About Traffic Rebound as CMA CGM Boxships Make Transit

November 17 ------ The Suez Canal Authority (SCA) is optimistic that transits are gradually returning to normal after the canal witnessed the passage of three mega ships operated by CMA CGM in a span of one week. Just a day after the UN Security Council overwhelmingly voted to renew sanctions against the Yemeni Houthis’ who have been waging attacks on commercial vessels forcing them to avoid the Red Sea, SCA now believes the situation is easing and mega ships are making transits through the canal.

On November 15, the Suez Canal celebrated an operational milestone after the newly delivered CMA CGM ship Helium made its maiden transit through the waterway. Delivered by South Korean shipbuilder HD Hyundai Samho last month, the 335 meters with a gross tonnage of 130,000 tons is part of new series of 12 container vessels fitted with dual-fuel engines that can operate on methanol that are being built by CMA CGM, the world’s third-largest container shipping company. The ship transited the canal as part of the northbound convoy en route from Singapore and calling at Egypt’s Alexandria port.

Another CMA CGM boxship, Jules Verne, also transited the waterway as part of the northbound convoy en route from Singapore to Lebanon after safely passing through the Red Sea and the Bab El-Mandab Strait, a development the comes after the Houthis promised to stop attacks on ships following the ceasefire between Israel and Hamas. Built in 2013, the voyage by the 396 meters ship with a gross tonnage of 176,000 tons is the first transit from the south through Bab El-Mandab, and its third transit through the canal. SCA is highlighting that Jules Verne is resuming transits after its last two southbound voyages this year in June and September, with the transit being inspired by incentives introduced in June.

Back then, SCA introduced an incentive scheme that introduced a 15 percent toll discount for container ships with a net tonnage exceeding 130,000 tons to encourage shipping lines to resume transits through the waterway.

The passage of Helium and Jules Verne came just a week after another CMA CGM container ship, the Benjamin Franklin, became the largest container ship to transit the canal in the past two years. The 399 meters ship with tonnage of 177,000 tons and a capacity of 17,859 containers, transited the waterway as part of the north convoy travelling from the United Kingdom to Malaysia, before safely passing through the Bab el-Mandeb Strait. “The restoration of calmness once more to the Red Sea region will impose a new reality on the shipping community; that is the necessity of serious consideration by the shipping lines of amending navigation schedules so as to return to transiting through Bab el-Mandab and the Suez Canal once more,” said Admiral Ossama Rabiee SCA Chairman.

SCA is buoyant the gradual return of transits on Suez Canal, which before the onset of the Houthis attacks was one of the world’s busiest waterways with about 12 percent of the world trade volume passing through it, will result in improved revenues. The authority is forecasting to generate $4.2 billion in 2025, up from $3.9 billion last year. The canal achieved its highest-ever annual revenue in 2023, reaching $10.2 billion.

To achieve the revenue targets, SCA is hoping the calmness currently being witnessed in the Red Sea is sustained. As part of measures to further cripple the Yemeni Houthis, the Security Council agreed to renew sanctions on the militant group for another year until November 14, 2026. The resolution to renew the sanctions garnered 13 votes in favor with Russia and China abstaining.

Source: maritime-executive.com