Suez Canal revenues decline up to 50% due to Red Sea tensions

Egyptian President Abdel Fattah al-Sisi confirmed on Monday that Suez Canal revenues have fallen by between 40-50 percent due to tensions in the Red Sea as a result of Huthi attacks made in solidarity with Palestine.

During the inauguration of Egypt Petroleum Show (EGYPES 2024) on Monday the at Al Manara International Conference Centre in New Cairo, Sisi said “the shipping corridor, which used to generate approximately US$10 billion annually, has declined by 40% to 50% since the beginning of this year.”

He pointed out that the Egyptian economy was affected first by the coronavirus pandemic, the Russian-Ukrainian crisis, and now by tensions across its various borders with Libya, Sudan, and the Gaza Strip.

The head of the Suez Canal Authority, Osama Rabie, stated in a telephone interview earlier in February with an Egyptian satellite channel that revenues from Suez Canal had declined from US$804 million recorded in January 2023 to $428 million during the same month this year.

Rabie said that the decline rate reached 46 percent, attributing this to the Red Sea crisis.

He pointed out that the number of ships that crossed the canal decreased to 1,362 ships in January, compared to 2,155 ships in the same month last year.