Suez Canal Chief: No Fee Exemptions, Even for US Ships
Speaking to Asharq Al-Awsat, SCA Chairman Osama Rabie said Egypt 'respects international maritime conventions,' referencing the 1888 Constantinople Convention, which guarantees free navigation through the canal under equal terms for all nations.
'There can be no distinction between ships in terms of services or commercial and financial preferences that favor one country over another,' Rabie said.
'This is not a stance against the United States, but rather a reflection of Egypt's commitment to impartiality — a principle that assures all nations of fair treatment.'
Trump, who is seeking a return to the White House in November, argued in an April post on his Truth Social platform that US military and commercial vessels should be granted free access to both the Suez and Panama Canals. 'These canals wouldn't exist without the United States,' he wrote.
The Suez Canal, a key source of foreign currency for Egypt, has suffered a sharp downturn in revenue and traffic since Yemen's Iran-aligned Houthi group began targeting ships in the Red Sea in late 2023, prompting many shipping lines to reroute via the longer and costlier Cape of Good Hope.
'We're facing a major crisis,' Rabie said, noting that daily transits have dropped to 30–35 vessels from more than 65 a day before the escalation. Annual canal revenue plunged 61% to $3.9 billion in the first half of 2024, down from $10.2 billion in 2023, Rabie added.
A total of 13,213 ships passed through the canal in 2024, compared to 26,434 in 2023, before the outbreak of war in Gaza.
Despite mounting pressure to safeguard maritime routes, Egypt has refused to join any military coalition targeting the Houthis.
'It is not Egypt's policy to engage in military alliances or attack an Arab country — after all, Yemen is a fellow Arab state,' Rabie said.
Since November, the Houthis have carried out more than 150 missile and drone attacks on vessels they say are linked to Israel, in retaliation for the war in Gaza. The assaults have sunk four ships, damaged several others, and killed at least 10 seafarers. The Iran-backed group also hijacked the Galaxy Leader vessel in a high-profile act of piracy.
In April, a US-led operation launched in December 2023 under the name 'Operation Prosperity Guardian' began leading strikes on Houthi targets from the northern Red Sea. Egypt declined to join both that initiative and Trump's earlier campaign, 'Operation Rough Rider,' unveiled in March.
Rabie expressed frustration at the ongoing war in Gaza, warning that continued violence would prolong the canal's downturn. 'A few months ago, traffic showed slight improvement following a ceasefire, but then the Houthis resumed attacks — hitting two ships in the past fortnight alone,' he said. 'Now, with conditions in Gaza deteriorating, our situation is worsening as well.'
On Monday, the Houthis declared a 'fourth phase' of their maritime blockade against Israel, vowing to target all ships linked to Israeli ports 'regardless of their nationality or destination.'
Still, Rabie remains optimistic that shipping through the Suez Canal will rebound once the war ends. 'If the fighting stops, the Houthis will have no justification to attack vessels in the Red Sea. We're hopeful that peace comes soon,' he said.
'Major ships have diverted to the Cape of Good Hope because it's currently safer, despite the higher costs and longer transit times,' he added. 'They've told us they'll return as soon as the war ends because no alternative can match the Suez Canal's advantages. Global shipping firms know this.'
Rabie urged international insurance companies to reduce premiums for vessels transiting the Red Sea, arguing that soaring insurance costs have contributed to the diversion of large ships away from the canal.
'Today, the total cost of passing through the Red Sea — including insurance — has exceeded the cost of the longer Cape route, driving many vessels to abandon the canal despite the longer journey,' he said.
To lure shipping traffic back, Egypt has introduced incentives, including up to 15% discounts on transit fees for container ships weighing 130,000 tons or more, whether laden or empty.
'We're doing all we can,' Rabie said. 'But until the security situation stabilizes, we're facing an uphill battle.'
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