Cairo intensifies its communications to reduce the impact of security tensions in the Red Sea
Cairo has intensified its communications to reduce the impact of security tensions in the Red Sea on the country’s dollar revenues and global trade. In this context, the head of the Egyptian Suez Canal Authority, Lieutenant General Osama Rabie, discussed with the Secretary-General of the International Maritime Organization (IMO), Arsenio Dominguez, “developments in the crisis and cooperation mechanisms to reduce its effects on global supply chains and maritime shipping traffic,” according to an official statement from the Suez Canal Authority. Egyptian Suez, Thursday.
During his meeting with Dominguez via video conference technology, Rabie confirmed “the regularity of navigation in the Suez Canal.” He said that “navigation has not stopped at all, even for a single day, since the outbreak of the crisis,” as the channel continues to “provide its navigation services normally, in parallel with the authority’s continued efforts to support its customers to reduce the impact of the current conditions on them.”
In turn, the Secretary-General of the International Maritime Organization stressed the organization’s “full support for the Suez Canal,” noting that the organization sent a “clear” message to its members stating that “navigation in the canal remains open to everyone, especially in light of the logistical and security challenges faced by ships resorting to To circumvent the Cape of Good Hope Road, in addition to the environmental challenges posed by the Cape of Good Hope Road as an (unsustainable) route for navigation traffic, due to its lack of necessary services,” according to the official statement.
Attacks in the Red Sea threaten to disrupt the flow of international trade (AFP)
Since the end of last November, the Yemeni “Houthi” group has been targeting ships in the Red Sea and Bab al-Mandab region, which it says are “owned or operated by Israeli companies.” The attacks come in response to the ongoing war in the Gaza Strip since October 7. ) the past. These attacks prompted international shipping companies to avoid passing through the Red Sea and change the course of their ships to the Cape of Good Hope route.
The head of the Suez Canal Authority said on Thursday, “The current situation threatens to exacerbate the volume of harmful carbon emissions as ships consume more fuel when they take alternative routes and sail for longer distances and periods of time than usual.” He added, “The Suez Canal saves time and distance compared to alternative routes, which contributes to reducing fuel consumption by rates ranging from 10 to 90 percent, and the resulting reduction in harmful carbon emissions.” In this regard, he pointed out that “the Suez Canal contributed to reducing carbon emissions by an average of 55.4 million tons during 2023, achieving a saving in fuel consumption of 16.9 million tons.”
While the Secretary-General of the International Maritime Organization explained that “the current conditions in the Red Sea region impose several challenges on the global trade movement and the maritime transport market, in addition to their negative effects on the Suez Canal and the ports in the region,” and he appreciated “the efforts made by the Suez Canal Authority in Achieving effective communication with all those concerned with the maritime transport market as a necessary approach to identifying the needs, services and guarantees needed by ship owners and operators to ensure safe passage through the Suez Canal.
The meeting between Rabie and Dominguez “comes as a continuation of the Suez Canal Authority’s efforts to communicate with all active parties in the international maritime community,” according to the authority’s official statement on Thursday.
During the meeting, Rabie reviewed “the new package of navigational and maritime services provided by the Suez Canal, which did not exist before, such as fuel refueling services, the marine ambulance service, as well as maritime rescue services, pollution control, ship repair and maintenance services at the authority’s arsenals, and other services that “Passing ships may need it in normal and emergency circumstances.” Rabie pointed out that the Authority’s Suez Marine Shipyard Company carried out maintenance and repair work on the bulk ship “ZOGRAFIA” after it was attacked in the Red Sea.
Egyptian President Abdel Fattah El-Sisi said, in a speech during the celebration of “Police Day,” on Wednesday, that “his country has begun to be affected by security threats in the Red Sea.”
Shipping containers during their earlier passage through the Suez Canal (Reuters)
At the beginning of this month, the head of the Suez Canal Authority announced, “The canal’s revenues in dollars have declined by 40 percent since the beginning of the year compared to 2023.” He said at the time that “ship transit traffic declined by 30 percent in the period from the first of January to the 11 of the same month on an annual basis.” The Suez Canal is one of the main sources of hard currency in Egypt, and its revenues last year amounted to $10.3 billion, according to official statistics.
The Egyptian economic expert, Dr. Mustafa Badra, confirmed that “the Suez Canal is an important axis for global shipping traffic. Between 10 and 15 percent of international trade traffic passes through the canal, and therefore any threat to it affects the world’s economies,” pointing to “the losses incurred.” affected the global economy before when navigation on the canal was disrupted for 6 days; Following the grounding of the ship (Ever Given) in March 2021.”
Badra pointed out that “what happens to navigation in the Red Sea is not Egypt’s responsibility, and if it bears its repercussions, it is a result of the international community’s support for Israel in its war on the Gaza Strip.” He told Asharq Al-Awsat, “The international community must realize that the repercussions of security threats do not only affect the economic situation in Egypt; Rather, its influence extends to the entire world.”
In this context, the Australian Mining Group (BHP) confirmed in an official statement on Thursday that “the disturbances in the Red Sea are forcing some shipping companies to take alternative routes.” Reuters news agency quoted the head of the group’s marine iron ore division, Gerard Ang, as saying, during a special conference in Singapore, on Thursday, that “about 320 million tons of bulk goods sail through the Suez Canal, which represents 7 percent of trade.” Global dry bulk cargo. He added, “In the short term, there may be pressure on cargo supplies in the North Atlantic market, making the dry bulk shipping market more volatile.”
In turn, the Kuwait Oil Tanker Company said on Thursday that it “monitors and evaluates the current situation in Bab al-Mandab and the Red Sea on a daily basis.” While Qatar Energy Company, which is one of the largest exporters of liquefied natural gas in the world, explained on Wednesday that “the crisis may affect the delivery of some liquefied natural gas shipments because they will take alternative routes.”
The Egyptian economic expert spoke about “initiatives and efforts made by the Suez Canal Authority to limit the effects of the crisis.” Among them, for example, is “providing discounts on transit fees, and providing various services for ships, such as repairing them if they are damaged,” stressing that “such initiatives, even if they contribute to alleviating the severity of the crisis; “It does not solve it radically.”
To confront security threats in the Red Sea, the United States and Britain this month carried out repeated strikes on Houthi sites in Yemen, which they said “aimed at disrupting and weakening the group’s ability to threaten navigation and undermine global trade.”
For his part, Mustafa Badra stressed that “the solution is not in Egypt’s hands; Rather, it is in the hands of the international community,” calling for action by the United Nations and the Security Council to stop the war in Gaza. He called on the countries of the world to stop security threats in the Red Sea, but at the same time, he questioned the intentions of the United States regarding its presence in the Red Sea through the “Guardian of Prosperity” coalition that it formed last month. He said, “Washington seeks a presence in the region in the context of its ongoing competition with China, as the Red Sea is part of the Belt and Road Initiative route launched by Beijing to revive the ancient trade Silk Road.”
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2024-01-25 16:45:04
