Suez Canal’s dollar revenues drop 40% amid Red Sea tensions: SCA

CAIRO – 13 January 2024: The Suez Canal has been experienced a 40 percent decline in dollar revenues from 1-11 January, 2024, compared to the same period last year, according to Osama Rabie, Chairman of the Suez Canal Authority (SCA).

In remarks via phone with Kol Youm TV program on ON channel, Rabie attributed the drop to tensions in the Red Sea, which have affected traffic through the international waterway.

During the first 11 days of January, the number of ships crossing the canal decreased by 30 percent to 544 ships, and the tonnage transversing the canal decreased by 41% compared to the previous year.

Rabie commented on the decision by some shipping lines to divert their route from Suez Canal to the Cape of Good Hope, saying that this alternative waterway adds more than 10-15 days to their crossing time.

He emphasized that the Suez Canal remains the most efficient and secure route for cargo ships, saving time, fuel, and money.

The Suez Canal is a vital link between Asia and Europe, facilitating approximately 12 percent of global trade.

Over the past weeks, the Houthis of Yemen have launched attacks against Israel-linked ships against the backdrop of the Israeli aggression in the Gaza Strip.

These tensions have caused a considerable number of shipping companies to divert the route of tens of vessels from the Suez Canal to evade Bab El-Mandab, where Houthis’ attacks are focused.