Egypt’s annual revenue from Suez Canal drops by 23.5% due to Red Sea crisis

Egypt’s annual revenue from the Suez Canal has decreased by approximately 23.5%, totaling $7.2 billion, because of tensions in the Red Sea.

In a written statement, Suez Canal Authority Chairman Osama Rabie stated that the repercussions of the Red Sea crisis significantly impacted the canal’s traffic.

“The security issues have prompted many shipowners and operators to use alternative routes along the canal, which has negatively affected the transit rates of ships.”

“This decline is reflected in the traffic statistics for the 2023/2024 fiscal year; 20,148 ships carrying one billion tons of cargo passed through, generating $7.2 billion in revenue,” the statement read.

The statement also noted that “during the 2022-2023 fiscal year, 25,911 ships carrying 1.5 billion tons of cargo passed through the Suez Canal, generating $9.4 billion in revenue. “

“(The current tensions in the Red Sea) not only affect the Suez Canal but also impact the maritime transport market, trade movement, and global supply chains,” the statement said.

Situation in Red Sea

In Yemen, the Iran-backed Houthis have been seizing commercial ships and attacking some with drones and missiles in response to Israel’s attacks in Gaza since October 31, 2023, claiming these ships are linked to Israeli companies.

Due to the Houthis’ actions, many shipping companies have decided to halt their operations in the Red Sea.

On December 18, 2023, the U.S. announced the formation of a multinational “maritime task force” named “Operation Guardian of Prosperity” with the participation of several countries to counter Houthi forces, citing threats to global maritime trade security.

Following attacks by the U.S. and U.K. on areas under their control in Yemen, the Houthis declared that they would target all ships from these countries.