- Egypt’s Suez Canal faces a 40% revenue decline in 2024 due to Houthis’ ship attacks, impacting the crucial waterway’s economic significance.
- With ship traffic down 30%, ongoing security concerns highlight the need for international collaboration to secure the canal.
Egypt’s Suez Canal, a crucial source of foreign currency, has witnessed a 40% decrease in dollar revenues since the beginning of the year compared to 2023. Canal authority head Osama Rabie revealed the impact of attacks by Yemen’s Houthis, causing major shippers to divert away from the route. The Suez Canal’s significance to Egypt’s economy is substantial, and the decline in revenues poses economic challenges for the country.
Navigational Challenges and Security Concerns in Suez Canal
Ship traffic in the canal has experienced a significant 30% decrease from January 1 to January 11 compared to the same period last year. The number of vessels passing through the Suez Canal dropped to 544 this year, down from 777 in 2023. Yemen’s Houthis, aligning with Iran, have targeted commercial vessels in the Red Sea, prompting diversions and impacting the canal’s operations. Efforts to address security concerns involve a new international mission announced by the United States to patrol the Red Sea and deter attacks. Rabie emphasizes that despite current challenges, a substantial portion of goods is expected to return to the canal once the security situation stabilizes.
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Source: Reuters
