In 2023, the Suez Canal boasted a remarkable revenue of $10 billion USD. However, the lucrative figures took a nosedive in the early months of 2024, primarily due to a significant shift in maritime routes. Escalating tensions in the Red Sea prompted many vessels to circumvent the perilous waters, opting instead for the safer passage through the Cape of Good Hope.
As reported by TTXVN's correspondent in Cairo on April 28, Hala El-Said, Egypt's Minister of Planning and Economic Development, underscored the drastic impact of Red Sea instability on the Suez Canal's operations. Addressing a high-profile gathering at the World Economic Forum in Riyadh, Saudi Arabia, El-Said lamented the substantial drop in revenue, emphasizing that the canal's earnings for 2023 stood at an impressive $10 billion USD. However, the burgeoning revenues dwindled significantly in the initial months of the current year as numerous vessels rerouted to evade potential threats in the Red Sea.
El-Said warned of the adverse repercussions on Egypt's foreign exchange earnings, which could potentially exacerbate food and energy price inflation in the North African nation.
Earlier, in February 2024, Osama Rabie, Chairman of the Suez Canal Authority, disclosed a staggering 46% decline in January 2024's revenue compared to the same period in 2023. Amidst mounting assaults by Houthi insurgents in Yemen targeting commercial vessels in the Red Sea, major shipping conglomerates swiftly altered course, diverting traffic away from this vital maritime artery.
Rabie revealed that only 1,362 ships traversed the Suez Canal in January 2024, marking a stark 36% reduction from the corresponding period last year.
In response to the heightened risks, numerous shipping firms opted for longer, albeit safer, routes circumnavigating the Cape of Good Hope in Southern Africa.
The Suez Canal, renowned as the shortest maritime link between Asia and Europe, stands as a cornerstone of global trade, facilitating approximately 12% of the world's seaborne cargo volume.
Moreover, the canal holds profound economic significance for Egypt, serving as a pivotal source of foreign exchange.
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