Affected by the situation in the Red Sea! Suez Canal revenue has dropped by 50% this year
On the 4th local time, Suez Canal Authority Chairman Rabieh revealed in an interview with a local TV station that the Suez Canal’s revenue has dropped by 50% since January. Affected by the tense situation in the Red Sea and the diversion of a large number of ships, the number of ships passing through the Suez Canal has dropped by 40%.
After a new round of Palestinian-Israeli conflict broke out, the local security situation deteriorated sharply, and the spillover effects of the conflict continued to emerge. The Houthi armed forces in Yemen have repeatedly attacked targets in the Red Sea. The Houthi armed forces stated that ships associated with Israel are "targets" of the organization, and the attacks will continue until Israel stops its military strikes on the Gaza Strip.
Tensions have led many international shipping companies to announce the suspension of Red Sea routes and instead detour around the southern tip of Africa. Ship traffic in Egypt's Suez Canal has dropped significantly. Rabie, chairman of the Suez Canal Authority, said earlier that although Egypt has introduced measures such as toll discounts to attract commercial ships, they are not enough to offset the safety concerns of shipping companies.
In the 2022-2023 fiscal year, Egypt will receive .4 billion in revenue from the Suez Canal. Canal revenue is one of the main sources of Egypt's national fiscal revenue and foreign exchange reserves.
In addition, Egypt is conducting a feasibility study on further expanding the Suez Canal to speed up shipping times and avoid potential blockage in this waterway, which accounts for 12% of global maritime trade. The Suez Canal Authority said the project aims to convert part of the one-way channel into a two-way channel, including 50 kilometers of the northern section of the canal and 30 kilometers of the southern section.
A member of the global freight forwarding WCA, less than 1% of domestic qualified enterprises, and the vice president unit of the Shenzhen Airlines Association.
