The current challenges in the region are primarily security challenges… and their repercussions are negative on the stability of global supply chains and navigation rates in the canal
Admiral Osama Rabie, Chairman of the Suez Canal Authority, confirmed that the Suez Canal operates efficiently around the clock and receives various types and loads of ships despite the current challenges in the Red Sea region.
Global Logistics Forum
This came during his participation in the discussion session “Flexibility of Logistics Services in the Face of Turmoil in the Red Sea”, within the activities of the Global Logistics Forum organized by the Saudi Ministry of Transport and Logistics Services during the period from (October 12-14) at the King Abdullah Financial Center in Riyadh.
The current situation
.Rabie explained that the current situation in the Red Sea region is an exceptional crisis that the region has not witnessed before and a major security challenge that has had a negative impact and repercussions on the sustainability of global supply chains, ship transit rates through the canal, and the flow of goods
Canal’s navigation statistics
Noting in this regard the decline recorded by the canal’s navigation statistics, as the number of passing ships decreased from 25,887 ships during the fiscal year 2022/2023 to 20,148 ships during the fiscal year 2023/2024, and revenues decreased from $9.4 billion during the fiscal year 2022/2023 to $7.2 billion during 2023/2024.
Chairman of SCA indicated that indicators since November 19 have monitored more than 6,600 ships taking the Cape of Good Hope route as a result of the current tensions in the region.
Measures and procedures
Rabie stressed that the Suez Canal has been working since the beginning of the crisis to take a set of measures and procedures that would reduce the effects of the crisis and maintain the safe and smooth flow of navigation traffic in the Canal
Added :that with opening direct lines of communication with all shipping lines, unions and ship operators, and holding periodic meetings with the International Maritime Organization, the International Chamber of Shipping and other stakeholders in the maritime community.
Safest navigational passage
Chairman of SCA added that despite the current turmoil, the Suez Canal remains the most important, shortest and safest navigational passage compared to other navigational routes, as the Cape of Good Hope route lacks sustainability and maritime services,
In addition to the Suez Canal’s success in reducing carbon emissions by 51 million tons during the past year alone.
The discussion session
The discussion session was moderated by Ms. Eleni Giokos, news anchor and CNN correspondent, and Dr. Rumaih bin Mohammed Al Rumaih, Deputy Minister of Transport and Logistics Services, and Mr. BUD DARR, Executive Vice President of Policies and Government Relations at MSC Shipping Line, participated in the discussion.
Global supply chains
The discussion revolved around several main axes, touching on analyzing the impact of the turmoil witnessed by the Red Sea region on the sustainability of global supply chains, and presenting visions and solutions to ensure the continuity of logistical flow and the return of stability to the maritime community.Official Spokesperson of the Suez Canal Authority George Safwat stated
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