Suez Canal shipping recovery in sight, Red Sea ceasefire boosts global trade recovery
The navigation volume of the Suez Canal is steadily recovering, with hopes of resuming full operations in the near future. The latest shipping data shows that the canal's weekly average navigation volume was approximately 244 ships in October, which increased to 269 ships in November. Although this is higher than the 229 ships recorded in the first nine months of this year, it has not yet returned to the level of around 500 ships before the Red Sea crisis at the end of 2023.
Recently, the Houthis announced a ceasefire, creating conditions for the resumption of shipping. The Suez Canal Authority has called on shipping companies to return to the Mandeb Strait and Suez Canal routes, and stated that it is planning to hold talks with major shipping companies to facilitate their return. As an important economic pillar of Egypt, the canal's toll revenue exceeded $8.5 billion annually before the conflict, but it plummeted by more than 50% last year.
Currently, several shipping companies are considering resuming navigation through the Red Sea. Some analysts predict that if the peace situation in Gaza persists, most enterprises are expected to resume using the Suez Canal in the first half of 2026. It is estimated that due to ships routing around the Cape of Good Hope in the past two years, global container ship capacity has shrunk by about 10%-11%, and the capacity of other types of ships has also declined to varying degrees.
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