Suez Canal Traffic Nosedives: Global shipping seeks alternate routes amid security concerns

The Suez Canal, a critical artery for global trade, is experiencing a significant decline in commercial ship transits, reaching the lowest levels since the infamous blockage by the Ever Given almost three years ago.

This is based on a report published by Bloomberg.

Data from the International Monetary Fund and Oxford University reveals that the seven-day moving average of daily Suez crossings has dropped to 49 as of Sunday.

This decline is attributed to attacks on vessels near the Red Sea, prompting a shift in global trade routes to longer and more expensive alternatives.

The seven-day moving average of daily Suez crossings, which includes bulk cargo ships, container carriers, and tankers, has seen a notable decrease from its 2023 peak of 83 transits in late June.

This downturn is also reflected in a year-on-year comparison, with the current average of 49 transits standing lower than the corresponding figure of 70 a year earlier.

The drop in traffic echoes the aftermath of the Ever Given blockage in March 2021, which caused widespread disruptions in supply chains.

A notable consequence of the decreased Suez traffic is the corresponding increase in the number of ships opting for the longer journey around the Cape of Good Hope, near the southern tip of Africa.

The Cape route has become an alternative for vessels rerouting their courses due to the challenges and risks posed by the Red Sea.

Maritime experts emphasise that these diversions not only result in longer voyage durations but also incur higher costs for shipping companies, impacting the overall efficiency of global trade networks.

As the Suez Canal experiences reduced traffic, the Ever Given, the vessel at the centre of the 2021 blockage, has taken an alternative route.

Ship-tracking data reveals that the Ever Given is currently positioned in the middle of the Indian Ocean, heading east toward Sri Lanka.

The ship's journey began in mid-December, coinciding with the onset of diversions prompted by security concerns near the Red Sea.

(With inputs from Bloomberg)