Suez Canal Traffic to Recover by Mid-2025 Amid Gaza Ceasefire, $7B Loss Projected

MENA Editor Staff

Feb 10, 2025 - 1 min read

Osama Rabie, Chairman of the Suez Canal Authority, announced that maritime traffic through the Suez Canal is projected to recover gradually, with operations returning to normal by late March and full restoration expected by mid-2025—provided the Gaza ceasefire remains intact.

In an interview on Egyptian television, Rabie revealed that the canal currently accommodates only 32 ships per day, a sharp decline from the pre-conflict daily average of 75 ships before the Gaza war began on October 7, 2023. He also confirmed that large oil tankers are still unable to transit the canal due to ongoing security risks.

Massive Financial Impact on Egypt’s Economy

Rabie highlighted the significant economic consequences, noting that the conflict has slashed Suez Canal revenues by approximately 60%, with estimated losses reaching $7 billion for the fiscal year ending in June 2025. The Suez Canal, a vital source of foreign currency for Egypt, has faced unprecedented disruptions affecting both national and global trade.

In December 2024, Egyptian President Abdel Fattah El-Sisi met with Rabie to assess the impact of regional tensions on the canal's operations. Ambassador Mohamed El-Shennawy, the Presidential Spokesman, confirmed that revenue losses have surpassed 60% compared to the previous year, marking one of the steepest declines in the canal’s history.

Red Sea Tensions Continue to Disrupt Global Shipping

The crisis has been exacerbated by security threats in the Red Sea and Bab el-Mandeb Strait, severely disrupting global shipping routes. Despite the Houthis in Yemen announcing an end to attacks on US and UK ships following the temporary ceasefire between Israel and Hamas, shipping companies remain cautious, stating that it’s still too early to resume regular operations through the canal.

As the situation evolves, the Suez Canal Authority remains hopeful that maritime traffic will rebound in the coming months, playing a crucial role in stabilizing Egypt’s economy and global trade routes.