What is happening in the most important shipping channel in the world? Why did the major shipping giants in the world suddenly decide to return to the Suez Canal after a long absence? What is the secret behind the return of big names like Maersk and Hapag-Lloyd to sailing in the Red Sea at this particular time? Are we really facing the end of a crisis that lasted more than a year and disrupted global trade? Does the return of these giant ships mean that canal revenues will break records again and revive the Egyptian treasury in dollars?
A state of optimism began to dominate economic circles after the German shipping company Hapag-Lloyd, which is ranked the fifth largest company in the world, announced its return to navigation in the Red Sea and the Egyptian Suez Canal. This decision came after a long period of interruption due to the tensions witnessed in the region. The company explained that the IMX service, which operates within the strong Gemini alliance between it and the giant Danish company Maersk, which is considered the second largest shipping company in the world, will actually begin to resume its course. Through the canal, as of mid-February, this service specifically links India, the Middle East, and the Mediterranean region. This means that we are facing a gradual and organized return to the most important shipping lines that used to circumnavigate Africa and use the Cape of Good Hope route.
The ships that will begin this historic return are the container ship Albert Maersk, which is heading to the west, and the Astrid Maersk ship, which is heading to the east. The dragons are sea giants, each of them reaching 351 meters in length. This crossing will be under the protection of military naval units in order to ensure the highest levels of safety for the crews, ships and cargo on board. This step is considered a message of reassurance to the rest of the shipping companies that are still hesitant or choose expensive alternative routes and the return will contribute directly to reducing the cost of trips. Increasing the speed of arrival of goods, all of which is in the interest of the Suez Canal, which was suffering from a decline in the number of ships passing through due to the Houthi attacks that began in November 2023 and greatly affected the global trade movement.
The Gemini alliance, which began actual work between Maersk and Hapag-Lloyd in February last year, alone operates about 29 main lines and 29 joint shuttle services on trade routes between East and West. Therefore, the return of this alliance to the canal means recovering a very large share of containers that were lost in the oceans. This decision was not easy and came after a careful study of the safety risks and the priorities of the two companies in protecting the interests of their customers, although there are still other companies that prefer the long route in order to raise shipping prices. It benefits from increased costs, but the return of major players like Maersk will put great pressure on the rest of the market to return to the shorter and more economical route, which is the Suez Canal, which is always the first and most important choice for trade movement between continents.
The impact of this return on the canal’s revenues in the coming period will be a radical shift because the return of giant container ships means the return of the huge dollar fees that these ships pay for transit, and this will reduce the pressure on the hard currency in Egypt and will increase the operating efficiency in the Egyptian ports linked to the canal. Everyone is now watching the success of the first group of ships crossing in mid-February because this will be the green light for many other companies to recalculate their accounts and return to the Egyptian artery, especially with assurances of military protection and coordination of international efforts to secure navigation in the region. It proves that the Suez Canal is not just a waterway, but it is the backbone of global trade, and there is no alternative that can replace its position, no matter how long it takes.
