Red Sea route returns for some shipping lines

Some major shipping companies have begun to resume their use of the Red Sea and Suez Canal routes, which had been largely avoided for nearly three years due to security concerns. This shift marks a partial return to the traditional, shorter maritime path between Asia and Europe, bypassing the longer route around Africa.

Increased traffic through Suez

The return of shipping lines to the Suez Canal is beginning to show in traffic numbers. According to the Suez Canal Authority, the net tonnage of container ships passing through the canal increased by 54% year-on-year between January and August. However, this is still far below the levels seen before the crisis began in 2023.

Security remains a key factor

Despite the return of some shipping lines, companies continue to emphasize that their decisions are based on current security conditions in the Red Sea. The Suez route is still considered risky due to ongoing conflicts around the Bab el-Mandeb strait, which connects the Red Sea to the Gulf of Aden. Companies are proceeding with caution and adjusting their routes accordingly.

Impact on African economies

The detour around Africa had created new economic activities along certain coasts, including increased fuel sales and port services. For example, in Mauritius, marine fuel sales have risen significantly. However, the long-term sustainability of these activities remains uncertain if more ships return to the Suez route.

Challenges for East African trade

The extended detour around the Cape of Good Hope caused delays in East African ports, affecting supply chains for goods like tea, coffee, and avocados. These delays also contributed to a shortage of containers, which has had ripple effects on local economies. Countries like Kenya and Tanzania rely heavily on the Suez route for their external trade.

Egypt’s economic loss

Egypt suffered a significant drop in revenue from the Suez Canal after the detours began. Canal revenues fell by 61% in 2024 compared to 2023, according to official figures. While the International Monetary Fund has noted a gradual recovery, the levels remain far below pre-crisis levels.

Risks for seafarers

The detour around Africa added weeks to shipping routes, increasing the risk of fatigue, isolation, and psychological stress for seafarers. The International Maritime Organization has highlighted the dangers, including the death of several seafarers due to attacks in the Red Sea and the resurgence of piracy in the Gulf of Aden.

Future of African ports

As more ships return to the Suez route, African ports face the challenge of retaining the new activities and services that developed during the detour period. Improvements in port infrastructure, digitalization, and trade efficiency could help these ports remain competitive even if the Suez route becomes more commonly used again.