Suez Canal Faces Revenue Loss Due To Regional Instability

10/1/2024 9:09:13 PM

(MENAFN- Trend News Agency) BAKU, Azerbaijan, October 2. The Suez Canal has experienced a revenue loss of 50 to 60 percent from January to August 2024, amounting to over $6 billion, Trend reports.

The flow of cargo through the Suez Canal has taken a nosedive, all owing to the rising tensions in the Red Sea since late 2023.

Historically, this channel was the busiest route for global trade and cargo transport. However, Houthi rebels' attacks on vessels, coupled with escalating tensions in the Middle East, have nearly halved tanker traffic through the waterway.

In August alone, 202 tankers with a total capacity of 16.6 million tons transited the canal, representing a decline of 49.8 percent compared to August 2023.

Chairman of the Suez Canal Authority (SCA), Osama Rabie, estimated that nearly 4 thousand ships have altered their routes, extending their voyages by an average of 10 days.

The Suez Canal Authority (SCA), established on July 26th, 1956, is a public and independent authority of a juristic personality. The administration reports to the Prime Minister of Egypt and has all the powers necessary to manage the channel's operations.

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