The Egyptian Suez Canal's annual revenue dropped by about 23.4% during year 2023/2024 due to the Red Sea crisis.
This is according to Suez Canal Authority (SCA) chairman, Osama Rabie, who highlighted the decline in authority’s revenue in a recent statement.
“Revenues fell to $7.2 billion in the fiscal year 2023/2024 that ended in June, from $9.4bn a year earlier,” Rabie said.
He said the number of crossing ships fell to 20 048 during the 2023/2024 financial year, compared to 25 911 in 2022/2023.
Rabie said the decline in revenue was due to the security challenges in the Red Sea, which have led to many shipping lines and operators opting for alternative routes to avoid the risk in the region.
He added that the ongoing tensions affect not only the Suez Canal but also the maritime transport market, trade movements and international supply chains. This is because transporting cargo via alternative routes increases both the time taken to move goods as well as vessel operating costs.
Yemen's rebel Houthi group has been targeting ships in the Red Sea since November 2023, attacking vessels that it claims are connected to Israel, in demonstration of its solidarity with Palestinians in the Gaza Strip.
The canal is a vital source of foreign currency for Egypt's economy as about 12% of global trade ordinarily moves through the waterway.
