Egypt's Suez Canal Authority, Danish shipping company Maersk sign strategic partnership agreement

ISMAILIA, Egypt, Nov. 26 (Xinhua) -- Egypt's Suez Canal Authority (SCA) and Danish shipping and logistics company Maersk signed here on Tuesday a strategic partnership agreement, signaling the latter's potential return to the Red Sea route via the Suez Canal after a nearly two-year suspension.

The signing was witnessed by SCA Chairman and Managing Director Osama Rabie and Maersk CEO Vincent Clerc.

Speaking to Xinhua, Rabie said the agreement opens new avenues for cooperation across various maritime and logistical domains, voicing hope for back-to-normal traffic rates in the region in the near term amid improved security.

"We are actually offering a 15-percent reduction for all container ships with a net tonnage exceeding 15,000 tons" that will pass through the Suez Canal, Rabie said, adding that the SCA has extended this incentive till March next year.

While the SCA said Tuesday in a statement that Maersk-affiliated vessels will resume transit via the Suez Canal on a partial basis starting from early December before a full-capacity return, Maersk clarified Wednesday on its website that it is still "conducting detailed security assessments" and that there has been "no specific timing" regarding its return to the route.

"The safety of crew, vessels and cargo remains our top priority," it noted.

Starting from December 2023, many major shipping companies, including Maersk, began diverting vessels from the Gulf of Aden and Red Sea towards Africa's southern tip in response to escalating attacks on commercial ships by Yemen's Houthi group.

In late September, Egyptian President Abdel-Fattah al-Sisi said the revenues of the Suez Canal, a major source of foreign currency for Egypt, have dropped by some 9 billion U.S. dollars over the past two years due to a challenging regional environment. Enditem