Adm. Ossama Rabiee, Chairman and Managing Director of the Suez Canal Authority, held a meeting with representatives of 25 of the major shipping lines and maritime agencies. The meeting, held at the SCA's headquarters, Al-Irshad building, at the city of Ismailia, was attended by Mr. Adel El-Lamei, Chairman of Port-Said Chamber of Shipping, to discuss the impact of the positive security developments in the Red Sea and Bab El-Mandab region on plans and schedules of navigation through the Suez Canal within the upcoming period.
In his speech, Adm. Rabiee stressed the importance of the consolidation of efforts and uniting the endeavours aiming to ensure freedom of navigation in the Red Sea region, praising the important role of the maritime agencies in bolstering strategic relations between the SCA and its clientele of major shipping lines and companies.
H.E. explained that the current security situation in the Red Sea region is witnessing positive developments towards the return of navigation in the Red Sea as concerns about maritime safety are receeding in light of the ceasefire in Yemen with the United States of America.
Adm. Rabiee called upon all shipping lines to give serious consideration to assessing their navigation schedules, and examine the possibility of making resolutions on the gradual return of a number of the vessels affiliated to them to the region.
H.E. also stressed the importance of positively reacting to the current situation and working together to alleviate the pressure off global supply chains as well as discussing ways and mechanisms for the gradual return of transits through the region while observing considerations of maritime safety and the safety of the crews.
H.E., the Chairman, expressed the SCA's constant readiness to hold discussions on ways of supporting its clients, pointing out that the SCA has witnessed great developments like: waterway development projects and maritime fleet modernizing in addition to its efforts to elevate the level of its services and its openness to entering into new foreign partnerships to achieve common interests.
The Chairman of the Authority emphasized the Suez Canal Authority's readiness to provide all its various navigational and maritime services as part of a comprehensive and integrated package to meet the needs of all transiting vessels under normal and emergency situations. This package includes ship maintenance and repair services, maritime salvage, water ambulance, and crew change, in addition to the safe collection and disposal of solid waste, which aligns with the Authority's green transformation approach.
On his part, Mr. Bahaa Badr, Chairman, Arabian Gulf Marine Trading Co. (agent of EVERGREEN LINE) expressed his appreciation for the Authority's supportive role for its clients in light of the unprecedented challenges witnessed in the Red Sea region. He expressed his hope that recent developments would send a positive message of reassurance to major shipping lines, contributing to their rapid return to transit through the Suez Canal and achieving promising results for the Canal's revenues by the end of the current year.
In the same context, Mr. Adel Ellameey, Chairman of Port Said Chamber of Shipping and Chairman of Mitchell Jr. Shipping Company, praised the efforts exerted by the Egyptian political leadership to contain the Red Sea navigation crisis. He also made several future proposals to enhance the Suez Canal's leading role in the international shipping community by exploring the possibility of forming a partnership with a global company specializing in vessel hull and machinery insurance.
The Chairman of Port Said Chamber of Shipping called for the necessity of holding an international maritime shipping conference through which the Suez Canal Authority sends reassuring messages to ship owners and major shipping companies, serving as a global platform for direct and effective communication with clients.
Mr. Hany El-Nady, Maersk Group Representative in MENA, emphasized the importance of the Suez Canal to Maersk Group as a strategic partner. He pointed out the positive indicators of current developments, which require ongoing monitoring by the Group to ensure continued stability, then evaluate navigation schedules and reconsider policies related to the return of navigation in the Red Sea.
As for Mr. Tariq Zaghloul, CEO of CMA CGM Egypt and Sudan Cluster, he emphasized the French global group's commitment to transiting through the Suez Canal, as reflected in last year's statistics, which witnessed 24% of the Group's vessels transit through the Canal. He expressed his hope that recent developments result in an increase in the percentage of vessels transiting through the Canal in the coming period.
On his part, Mr. Mohamed Samir, Managing Director, LETH Egypt, emphasized the importance of shipping agencies continuing to fulfill their role in conveying a direct and realistic picture of the developments in the Red Sea region, amid anticipation by shipping lines of a reassuring return to stability in the region, enabling transit through the Suez Canal once again.
Mr. Mohamed Gamal, Gulf Agency Company (Egypt), agreed with him, noting the Group's commitment to continuous communication with shipping companies and shipping lines and conducting regular visits to explain the situation and its developments.
As for Mr. Wassim Shukri, Wilhelmsen Agency, he expressed his optimism about the current developments on the maritime scene, which bode well for positive results.
Mr. Hossam Hassan, Clarkson Shipping Agency, called for considering granting temporary incentives for the shipping lines, subject to regulations set by the Suez Canal Authority, in order to help offset the increased insurance fees imposed by the insurance companies on vessels transiting the Red Sea, a high-risk area.
Mr. Haitham Selim, WORLD MARINE Agency, also agreed with him, considering the incentives a major attraction factor that will contribute to the rapid return of the shipping lines to transit through the Suez Canal. He also emphasized the importance of the Suez Canal Authority entering the ship scrapping business as one of the most promising maritime activities.
Furthermore, Mr. Amr El Bibani, Scandinavian Shipping Agency, expressed his support for the SCA proposal to provide some incentives and thought-out toll reductions, subject to specific regulations in terms of the net tonnage of vessels transiting through the Canal, which may contribute to accelerating the return of the vessels, particularly the mega container vessels.
Mr. Marwan Haridy El Shazly, representative of PAN Marine Group, also expressed his support for the same proposal to provide attractive incentives to the vessels, particularly mega container vessels.
In addition, Mr. Walid Abdelalim Ahmed, IBRAMAR Shipping Group, considers it is important to communicate with insurance companies to negotiate the value of imposed insurance fees on vessels transiting through the Red Sea region, which poses a challenge that impacts increased operating costs, freight rates, and other related consequences.
Mr. Mohamed Ghazi, Manager, Marine Dept., Yang Ming Shipping Egypt, praised the great development of the logistical and maritime services provided by the SCA, which makes it the optimal choice of the Group's vessels, especially with the Group's handling services in Damietta Port.
Moreover, Mr. Mohamed Wissam, General Manager, Noatum Maritime Egypt, and Mr. Mahmoud Al-Hamamsy, El Hamamsy Marine Services, agreed that recent indicators send positive messages to shipping lines considering returning to transit through the Suez Canal.
Mr. Magdy Mustafa, Director of Ports Operations at the Noatum Maritime, stressed his complete confidence in the return of navigation through the Suez Canal, given the Canal's critical importance to the global economy.
He also pointed out the risks vessels face when navigating around the Cape of Good Hope and the high rate of ship accidents due to bad weather, making a return to transiting through the Suez Canal inevitable.
As for Mr. Mohamed Radwan, Worms Services Maritimes, he stressed his commitment to continue communication with clients to keep them fully informed of the current developments in the Red Sea region. He also pointed out the reservations of shipping lines regarding maritime safety and the rise in marine insurance premiums.
Mr. Mohamed Moneiem of Sphinx Shipping Agency lauded the significant leap witnessed by the Suez Canal Authority in terms of upgrading its system of maritime services, highlighting the current agreement with Port Said Shipyard to carry out maintenance and repair works on the vessel CORUS, that will be followed by repair works on another vessel. In the meantime, negotiations are ongoing for a third vessel to undergo maintenance works among the Agency’s operations.
On that same note, Mr. Ahmed Khalil of ARKAS Egypt emphasized the importance of the SCA's paying more attention to the aspect of marketing through organizing international maritime exhibitions and conferences which contributes to conveying messages of assurance to clients and shed the light on developments undertaken the SCA is witnessing across the board.
While Mr. Farid Marcos of Consult Navigation Agency called for reviewing rebate requests for long-haul vessels and vessels calling at Egyptian ports in a manner conducive to attracting more vessels to transit through the Suez Canal.
Whereas, Mr. Mohamed El-Gabary of Inchcape Shipping Services underlined the importance of direct communication with the other major shipping lines to prompt them to make the decision of going back to transiting through the Red Sea for the significant impact it would have on encouraging other shipping lines to transit through the Red Sea region as well.
Mr. Mahmoud Medhat El-Qadi, Executive Director of KADMAR Shipping and agent of HMM, stressed the importance of communicating with international maritime organizations for crew members and deliberating with them about putting their concerns about the Red Sea's security situation to rest and declaring it a war-free zone.
On this topic, Mr. Abdelrahman Ali Tharwat of ONE Agency asserted that the Suez Canal is indispensable and the return of shipping lines to the Canal is inevitable. He added that it is merely a question of timing and the persistence of the recent positive indicators.
Similarly, Mr. Hany El-Salamy of COSCO Shipping Lines believes that time is the biggest challenge, especially in light of the shipping lines' focus on some factors regarding security concerns and the cost of insurance on vessels.
On his part, Dr. Mohamed Baha El-Din of EVERGREEN Line pointed out that many shipping lines are starting to suffer from the repercussions of navigating around the Cape of Good Hope which makes the decision to transit through the Suez Canal a primarily economic one.
Ms. Amani Helmy, General Manager of DOMINION Shipping Agency, expressed her support for the previous propositions that aim to remedy the ongoing crisis.
At the end of the meeting, Adm. Rabiee expressed his appreciation to the attendees and assured them of his keenness on thoroughly reviewing all the propostions and holding joint discussions on them through similar regular meetings, to be followed by meetings with the executive leadership of global shipping lines and maritime organizations.