In addition to this, there has also been an increase in the costs of ship fuel and ship insurance costs, sometimes reaching 10 times the pre-crisis insurance value
Ship freight prices increased from $750 to $6,800 per container due to tensions in the Red Sea region, Chairman of the Suez Canal Authority (SCA) Osama Rabie, said in the opening of the 13th annual conference on Sustainable Green Blue Infrastructure (MARLOG 13) on Sunday.
In his speech, Rabie touched upon the security and geopolitical tensions in the Red Sea region that have erupted since last November, and which are still casting a shadow on the global maritime scene.
In addition to this, there has also been an increase in the costs of ship fuel and ship insurance costs, sometimes reaching 10 times the pre-crisis insurance value, these are unprecedented challenges facing the maritime transport industry and affect navigation rates in the Suez Canal.
At yesterday's conference, Rabie indicated that technical studies on the duplication process had been completed noting that the ACE Moharram Bakhoum and Dar Al Handasah companies had prepared feasibility studies for the full duplication project, and the companies proposals to be presented to President Abdel Fattah El Sisi to start the implementation process. He said that completely doubling the canal would raise ship crossing safety rates to 100%.
Rabie confirmed that the Suez Canal has succeeded during the past few years in achieving an unprecedented development boom in projects to develop the navigational channel and the associated infrastructure and logistical projects.
These efforts are part of a broader strategy to provide comprehensive maritime services, including the development of the southern sector of the canal, which is expected to increase navigational safety by 28%.
He also added that the authority is currently working to implement a plan to build and develop 3 marinas for yachts in the canal cities.
In response to the crisis, the Suez Canal Authority has held meetings with various stakeholders to address disruptions in global supply chains. Efforts have focused on mitigating the impact of prolonged journey times via the Cape of Good Hope route and addressing the lack of ports and logistical services along this route.
