Suez Canal: Is the Restoration of the Trade Route Imminent?

Earlier this month, the CMA CGM Benjamin Franklin, a container ship measuring 399 meters in length and capable of carrying nearly 18,000 TEU, made a safe passage through the Suez Canal. It is the largest vessel in two years to use this route. According to the Suez Canal Authority (SCA), this signals that shipping lines are gradually regaining confidence in this critical trade corridor.

Despite this positive development, many carriers still opt for the route around the Cape of Good Hope, which adds more than 4,000 kilometers and extends transit times by 7 to 10 days. The security situation in the Red Sea remains uncertain, despite a ceasefire and ongoing negotiations. Major container lines have yet to formally commit to fully resuming Suez transits, meaning concrete steps remain limited for now.

To encourage carriers, the SCA has extended its 15% discount on toll fees until December 31, 2025, with plans to potentially prolong this measure through June 2026. This initiative aims to restore confidence in the Suez route as conditions in the Red Sea continue to stabilize.

Developments surrounding the Suez route are crucial for global supply chains. Stay tuned for updates on safety, cost advantages, and the impact on your logistics.