Egypt's Suez Canal revenues drop amid Red Sea shipping crisis

(MENAFN) The Central bank of Egypt reported a 7.4 percent year-on-year decline in Suez Canal revenues for the first nine months ending in March, according to its recent "Balance of Payments" report. Total revenues from the canal during this period amounted to USD5.8 billion, down from USD6.2 billion in the previous year. This reduction coincided with a persistent shipping crisis in the Red Sea, attributed to attacks by the Houthi group on commercial ships associated with Israel, Britain, and the United States. These attacks, undertaken in solidarity with Gaza amid ongoing conflict since October 7, have targeted Israeli-linked cargo vessels using missiles and drones across the Red Sea, Arabian Sea, and Indian Ocean.

The decline in Suez Canal revenues was driven by a decrease in net tonnage to 945 million tons and an 11.5 percent year-on-year drop in the number of ships transiting through the canal. Specifically, during the first quarter of 2024, revenues plummeted by 57.2 percent to USD959.3 million, down significantly from USD2.2 billion in the first quarter of 2023.

The Suez Canal holds immense global significance as one of the most crucial waterways and straits. It serves as the shortest maritime route between Europe and Asia, facilitating vital international trade flows. Moreover, the canal stands as a primary source of foreign currency earnings for Egypt, underscoring its economic importance amid these challenging operational conditions.



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