Red Sea crisis triggers 40 per cent drop in Suez Canal revenues

Red Sea crisis triggers 40 per cent drop in Suez Canal revenues

Egypt’s Suez Canal’s revenues are reportedly down by 40 per cent from the beginning of this year compared to the same period in 2023.

According to Reuters, Osama Rabie, the Suez Canal Authority’s Chairman and Managing Director, released this information on 11 January 2024 during a late-night talk show.

Rabie disclosed a 30 per cent reduction in ship traffic during the specified period compared to the corresponding period in the previous year.

He further reported that the number of vessels transiting the canal has dropped to 544 this year, down from 777 in the same period last year.

READ: Red Sea crisis stifles global shipping

The news comes in the aftermath of Houthi attacks on ships in the Red Sea, which led major shippers to detour away from the waterway.

According to Rabie, only ships with urgent travel requirements opted for diversion around the Cape of Good Hope, while others chose to wait for the situation to become more stable. When referencing the Houthi attacks, he stated: “A very large portion of the goods will return (to the Canal) once this matter is finished.”

This month, Sea-Intelligence reported that the Red Sea crisis caused maritime shipping carriers to become exceedingly volatile and prone to rapid change.

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