Suez Canal revenues plummet to $4 bln in 2024 amid Red Sea tensions
Rabie noted that Egypt lost $6.2 billion in Suez Canal revenues, falling short of the target revenue of $10.6 billion for 2024.
The number of ships transiting the Suez Canal annually also decreased by around 50 percent, with approximately 13,200 vessels passing through in 2024, compared to 26,400 in 2023.
Rabie further explained that daily traffic in the canal fell from 75-80 ships to 32-35 ships during the same period.
This decline in revenue and traffic resulted from the ongoing geopolitical tensions in the Red Sea and Bab el-Mandeb region that have disrupted navigation and impacted global trade.
According to the World Bank's Global Economic Prospects report in October, Houthi attacks on Red Sea shipping have reduced transit through the Suez Canal, disrupted international trade, and heightened policy uncertainty, particularly in neighbouring countries.
"Spillovers from the conflicts in Gaza and Israel and trade disruptions in the Red Sea continue to negatively affect sentiment and cause substantial declines of up to 70 percent in Suez Canal receipts, a significant foreign currency source for Egypt," IMF Mission Chief to Egypt Ivanna Vladkova Hollar stated
Despite these tensions, the SCA successfully conducted a trial operation of its new dual passageway in the Little Bitter Lakes area. The operation involved allowing two ships to pass through the newly dredged waterway to enhance navigational safety, increase capacity by six to eight vessels per day, and improve emergency handling. The successful operation marks a significant milestone in developing the canal's southern sector.
The Suez Canal expects $9 billion in revenue for the 2024/25 fiscal year.
A vital waterway connecting the Mediterranean Sea to the Red Sea, the Suez Canal plays a critical role in global trade by offering a direct route for shipping between Europe and Asia. This allows ships to bypass the lengthy and costly alternative around the southern tip of Africa.