The dollar revenue of the Suez Canal has fallen by 40 percent since the beginning of the year compared to the same period in 2023, said the CEO Osama Rabie, as shipping companies are avoiding it to escape attacks from Yemeni Houthis.
From January 1 to 11, shipping traffic decreased by 30 percent compared to the same period last year, an Egyptian official said on a late-night talk show.
Since the beginning of the year, 544 ships have passed through the canal, compared to 777 in the same period of 2023, Rabie noted.
According to him, only those ships that had to continue their journey immediately chose the route around the Cape of Good Hope, while others are waiting for the situation to stabilize.
Concerns for the safety of sailors cannot be alleviated by discounts or other incentive measures that the Suez Canal offers, he emphasized.
– A large portion of goods will return (to the Suez Canal) when this comes to an end – he concluded, speaking about the Houthi attacks.
At the end of last year, the Houthis began attacking commercial ships in the Red Sea to express support for the Palestinian Hamas in its fight against Israeli armed forces in the occupied Gaza Strip.
In such conditions, many shipping companies redirected their ships around the Cape of Good Hope, and the U.S. initiated an international mission aimed at protecting navigation. On Friday night, U.S. and British armed forces attacked military targets in Yemen, and the Houthis announced a response.
The Suez Canal is a key source of foreign exchange revenue for Egypt, and authorities have sought to increase it in recent years by expanding it in 2015. The expansion works are still not completed.
