Denmark's Ambassador to Egypt, Lars Bo Moller, has stated that Maersk is evaluating a possible return to the Suez Canal. Speaking at a meeting with Canal officials, Moller said the company is closely monitoring developments in the Red Sea.
Suez Canal Authority (SCA) Chairperson Osama Rabie urged Maersk to gradually return to the waterway as Israel and Hamas continue peace negotiations in Gaza, according to published reports.
Major container and tanker operators withdrew from the region in early 2024 after Houthi groups attacked merchant vessels following the Gaza conflict that began in October 2023. The absence of global shipping has cost Egypt tens of billions of US dollars in lost toll revenue from vessels that would normally pass between Asia, the Arab states, Europe, the Mediterranean, and North America.
Shipping lines have diverted traffic around the Horn of Africa, adding up to two weeks to voyages. Military operations by the United States and European Union in Yemen have not fully removed the threat, with recent Houthi attacks resulting in one seaman killed and another injured.
Maersk's shares fell 4% after news of a Gaza ceasefire, as investors considered the likelihood of Red Sea routes reopening, which could reduce capacity constraints and lower freight rates.
Rabie noted that Maersk is currently expanding the Suez Canal Container Terminal at East Port Said, located at the northern end of the canal. The company also operates in Alexandria, Damietta, and Port Said.
Moller, who is not related to the Moller-Maersk family that controls the company, said the partnership with SCA on the terminal project would enhance the port's role as a regional trade and logistics hub.
Source: FreightWaves