Over 6,600 ships opted for longer Cape of Good Hope transit amid Red Sea tensions
Speaking at the Global Logistics Forum in Riyadh, Rabie reported a 23.4 percent drop in the Suez Canal revenues, from $9.4 billion in the fiscal year (FY) 2022/2023 to $7.2 billion in FY2023/2024.
He also noted a 22.16 percent decline in the number of ships transiting the Suez Canal, from 25,887 in FY2022/2023 to 20,148 in FY2023/2024.
Rabie described the current situation in the Red Sea as an exceptional crisis highlighting significant security challenges to the sustainability of global supply chains, according to a statement from the SCA.
Furthermore, he asserted that despite current disruptions, the Suez Canal remains the most important, shortest, and safest route compared to alternative pathways like the Cape of Good Hope, which lacks sustainability and adequate marine services.
He stated that the SCA has introduced various maritime services for clients during normal and exceptional circumstances.
Rabie explained that these services include ship maintenance and repair, pollution control, fuel supply, solid waste removal, marine ambulance services, and crew changes using the authority's launches.
In addition, he mentioned that the SCA is currently pursuing partnerships to execute new investments that would yield economic returns, such as port development and the establishment of container terminals in collaboration with the Ministry of Transport.
Red Sea escalation
Tensions in the Red Sea have escalated following the Houthis' recurring attacks on ships linked to Israel, the US, and the UK near the strategic Bab El-Mandeb Strait.
The group, which controls much of Yemen but is not recognized internationally, says the attacks were meant to pressure Israel to end its deadly war on the Gaza Strip.
The Red Sea is linked to the Mediterranean by the Egyptian Suez Canal, creating the shortest shipping route between Europe and Asia.
It is also connected to the Gulf of Aden by the Bab El-Mandeb Strait between Yemen and Djibouti.
Heading down around the Cape of Good Hope route and then back north to Europe forces ships to take longer time, up to 15 days, resulting in increased costs.
The Suez Canal is a major source of hard currency for Egypt.