Dear Partners & Shipping Lines,
KADMAR Shipping is honored to inform you that we received an official invitation from the Office of the Chairman of the Suez Canal Authority (SCA) to attend a high-level strategic meeting with the Authority’s leadership, board members, and representatives of major global carriers, including Maersk, MSC, Hapag-Lloyd, ONE, Yang Ming, COSCO, CMA CGM, and others.
The meeting addressed the latest geopolitical, security, and operational developments affecting the Suez Canal and discussed the framework for the safe and sustainable resumption of vessel transits. The key outcomes are summarized below:
1. Security and Stability of Navigation
H.E. Lt. Gen. Osama Rabie, Chairman of the Suez Canal Authority, emphasized that the recent ceasefire agreement in Gaza, achieved through Egyptian diplomatic efforts during the Sharm El-Sheikh peace meetings, has restored confidence in regional stability.
He added that Egypt’s pivotal role in ensuring maritime security will be reflected during the upcoming IMO meetings, where the SCA will propose declaring the region a conflict-free navigation zone to reassure shipowners and insurers and encourage full resumption of traffic through the Canal.
2. Incentives for Early Returning Lines
The SCA is currently studying a future credit and discount mechanism to reward shipping lines that resume transits early, in recognition of their confidence and commitment to the Canal.
Enhanced emergency response and marine support measures are also being developed to further strengthen navigational safety and service reliability.
3. Acknowledgment of Continuous Operations
The Chairman paid special tribute to the lines that continued transiting the Canal despite global challenges — particularly CMA CGM, whose regular presence was commended as a reflection of professional commitment and trust in the Suez Canal.
4. Freight Market and Economic Considerations
Shipping lines noted that freight rates have fallen to exceptionally low levels, making deviation via the Cape of Good Hope economically unjustifiable due to high fuel consumption and longer sailing times.
Persistent tensions in other regions (e.g., Russia–Ukraine) continue to keep bunker prices elevated, with no immediate signs of reduction.
Accordingly, resuming Suez Canal transits now represents the most cost-efficient and sustainable route for global trade and liner operations.
5. Coordination with International and Maritime Institutions
The SCA is actively engaging with:
– Global insurance and P&I clubs to reduce war-risk premiums for vessels transiting the designated safe corridor.
– Seafarer organizations and maritime unions to ensure crew welfare and safe working conditions.
– Media and digital platforms to promote positive awareness and transparency about Canal operations.
6. Media and Global Communication Strategy
Participants praised the SCA’s swift response to last week’s incident, which was efficiently managed without affecting navigation.
A multi-language statement was promptly published on the SCA’s official website to reassure the global shipping community that transit operations remain fully normal.
It was further emphasized that the importance of digital communication, noting that the SCA has begun documenting short testimonial videos from shipmasters crossing the Canal & sailing through the Red Sea, sharing their positive experiences globally to reinforce the image as a stable and secure maritime hub.
7. Gradual Return of Vessel Traffic
It was agreed that non-liner vessels such as bulk carriers, tankers, and tramp are expected to completely return sooner, as they operate on a spot market basis.
Meanwhile, container liner services, bound by long-term schedules, may take slightly longer to reorganize their routes.
However, H.E. Lt. Gen. Osama Rabie noted that “it did not take liners long to deviate via the Cape of Good Hope, and it should not take them long to return to the Suez Canal either.”
Several lines forecasted a full return to Suez Canal transits starting in January 2026.
8. Coordination and Direct Communication
The Suez Canal Authority confirmed its readiness to meet any shipping line either in person or via online conference to discuss operational, technical, or commercial matters related to the resumption of transits.
KADMAR Shipping will assist in facilitating these meetings and coordinating schedules upon request.
With sincere regards,
Mahmoud M. El Kady
General Manager – KADMAR Shipping (Egypt)
📞 Tel: +20 122 226 8016
📧 Email: general@kadmar.com
🌐 Website: www.kadmar.com