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Suez Canal revenues fall by $6bn as unrest continues

By Pramod Kumar
Boat, Transportation, Vehicle Alamy via Reuters
In July, Egyptian prime minister Mostafa Madbouly said that the Suez Canal was reporting losses of up to $550 million per month

Suez Canal revenues have fallen by $6 billion this year amid regional geopolitical issues, president Abdel Fattah El Sisi has said.

The income from the waterway, connecting the Mediterranean and the Red Sea, declined by between 50 percent and 60 percent in the first eight months of 2024, local media reported, citing the president’s speech at a police graduation ceremony.

In July, Egyptian prime minister Mostafa Madbouly said that the Suez Canal was reporting losses of up to $550 million per month due to ongoing regional tensions.

Suez Canal Authority chairman Osama Rabie said in January that dollar revenues from the Suez Canal were down 40 percent since the start of the year after attacks by Houthi militants in Yemen forced global shippers to opt for longer but safer routes.

The Iran-aligned Houthis, who control much of Yemen, have launched multiple attacks against commercial vessels in what they say is a protest against Israel’s military operations in Gaza.

Vincent Clerc, CEO of Danish shipping major Maersk, has said that disruption in the Red Sea was expected to stretch into the third quarter of 2024, making the situation challenging for carriers and businesses.

Maersk has estimated earlier that the Red Sea disruption resulted in a 15 to 20 percent industry-wide capacity loss on the Asia to North Europe and Mediterranean routes in the second quarter of 2024.

In May, the World Bank said that the traffic volume through the strategic Suez Canal and Bab El-Mandeb Strait had dropped by half as of March 2024.

There has been a 100% increase in shipping using the alternative route via the Cape of Good Hope.

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