Egypt's Suez Canal Feels the Heat as Piracy Spikes

Cargo ships are seen going through the Suez Canal towards the Red Sea, in Ismailia, Egypt, Monday,...

Cargo ships are seen going through the Suez Canal towards the Red Sea, in Ismailia, Egypt, Monday, Nov. 24, 2008. For nearly 140 years it's been a vital shortcut between East and West, cutting days off the time ships must travel from Asia to Europe or America, but as the scourge of Somali piracy prompts major shipping companies to seek another route, the Suez Canal now faces an enormous challenge. (AP Photo/Nasser Nasser)

(AP)

The Suez Canal, a vital shortcut between East and West for nearly 140 years, is facing an enormous challenge, as the scourge of Somali piracy prompts major shipping companies to seek another route.

Egypt, which is heavily dependent on the fees it charges ships to go through the Canal, has expressed concern over a possible drop in income — though it says it's hopeful an international flotilla patrolling the pirate-infested waters will be able to ensure safe passage.

"For sure it will have a bad effect" if it continues, Gen. Ahmed Fadel, head of the Suez Canal Authority, told The Associated Press Monday at his office overlooking the canal.

At least two shipping companies have announced their vessels will take the long route around the southern tip of Africa rather than go through the canal, which requires crossing through the Gulf of Aden, scene of most pirate attacks.

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The 120-mile (193-kilometer) long canal gives a vital shortcut linking the U.S. and Europe with the Indian Ocean and its Asian ports. The canal runs between the Mediterranean and the Red Sea, where there have been no pirate attacks. But the only access from the Red Sea to the Indian Ocean is through the Gulf of Aden, where Somali pirates have hijacked more than three dozen ships and attacked dozens more so far.

"One or two more piracy attacks will just send an alarm, and we will find ourselves with a big problem," said Adel Lami, chairman of Port Said Navigation Chamber, a body that represents private maritime companies on the northern tip of Suez Canal.

To avoid the Gulf of Aden, Europe's largest shipping firm A.P. Moller-Maersk A/S said last week it was telling some of its slower ships to sail around Africa's Cape of Good Hope, and Norwegian shipping group Odfjell SE ordered its more than 90 tankers to do the same. That means adding up to two weeks to some voyages.

Other firms, including one of the world's largest oil tanker companies, Frontline Ltd., have said they are considering other options, including traveling around the Cape — even though such a move would extend the trip by 40 percent.