Egypt Tests New Extension for Suez Canal

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A test of a new 10 kilometer channel near the southern end of the Suez Canal was successful, as Egypt looks to expand the critical waterway years after the Ever Given container ship blocked the canal for nearly a week.

Two ships moved through the new passageway in a trial run on December 28, Reuters reports, with the extension growing the total length of the Suez Canal’s two-way section from 72 to 82 kilometers. The project was brought about following the disastrous grounding of the Ever Given in 2021, which blocked the waterway for six days and impacted billions of dollars worth of trade before the ship was finally re-floated and towed out. According to the Suez Canal Authority, the expansion will boost the channel’s capacity by as many as eight ships a day, and “enhance its ability to handle potential emergencies.” 

This comes at somewhat of an inconvenient time for the Suez Canal, with Houthi rebels based out of Yemen continuing to choke off traffic through the waterway. Houthis started attacking vessels in the Red Sea in October 2023, at first targeting ships with ties to Israel, although many of its attacks since then have been largely indiscriminate. Over the last year, Houthis have been linked to more than 130 incidents in the Red Sea and the Gulf of Aden in total. That’s led to ocean carriers avoiding the Suez Canal altogether, instead opting for a longer journey around South Africa’s Cape of Good Hope. In a December 26 briefing, Egypt President Abdel Fattah al-Sisi estimated that his country had seen a 60% year-over-year drop in revenue from the canal in 2024, totaling roughly $7 billion in losses. 

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