Suez Canal Revenues Plunge 60% on Red Sea Instability --[Reported by Umva mag]

Egypt’s Suez Canal has seen a sharp revenue drop of 60 percent and a 49PC decline in ship traffic since the beginning of 2024, as unrest in the Red Sea region disrupts global shipping.

Osama Rabie, head of the Suez Canal Authority (SCA), is quoted by Xinuhua, saying shippers are increasingly avoiding the canal due to instability, driven by escalating violence in the region.

The Red Sea has become a hotspot for attacks, particularly since the Gaza conflict intensified in late 2023, with Yemen’s Houthi forces targeting vessels linked to Israel.

Revenue from the canal dropped significantly, down to $7.2 billion in the 2023/2024 fiscal year from $9.4 billion the previous year, according to SCA data.

The Suez Canal, a critical source of foreign currency for Egypt, is facing growing competition as shipping companies seek alternative routes.

This comes as the country battles deepening economic troubles, including surging inflation and a weakening currency that has it devalue its pound before.

Rabie warned that the challenges posed by regional instability could further erode the canal’s earnings in the months ahead, complicating efforts to stabilise Egypt’s economy amidst ongoing geopolitical tensions.

This shift from Suez Canal has resulted in delays in delivery and prolonged voyage times that will increase costs for goods, which relies mainly on imports to meet the demand of most of their goods.

The Red Sea, a critical route for oil and fuel shipments globally, is witnessing an uptick in Houthi attacks, employing drones and rockets against foreign-owned vessels.

[email protected]

The following news has been carefully analyzed, curated, and compiled by Umva Mag from a diverse range of people, sources, and reputable platforms. Our editorial team strives to ensure the accuracy and reliability of the information we provide. By combining insights from multiple perspectives, we aim to offer a well-rounded and comprehensive understanding of the events and stories that shape our world. Umva Mag values transparency, accountability, and journalistic integrity, ensuring that each piece of content is delivered with the utmost professionalism.