The revenues of Egypt's Suez Canal have declined by 60% since the beginning of 2024, while the number of ships passing through the critical waterway has dropped by 49%, according to a statement from Osama Rabie, Chairman of the Suez Canal Authority, last Saturday.
He attributed the significant downturn to "the current situation and unprecedented challenges in the Red Sea region," which have prompted many shipping companies to seek alternative routes.
The SCA reported that revenues fell from $9.4 billion in the fiscal year 2022/2023 to $7.2 billion in 2023/2024. Egypt’s fiscal year runs from July 1 to June 30. The decline comes amid ongoing conflict in the region, including repeated attacks by Yemen’s Houthi group on ships with ties to Israel since the outbreak of violence in Gaza in October 2023.
The chairman stated that joint discussions with customers revealed that there is no viable long-term alternative to the Suez Canal. Major shipping lines have confirmed that the Canal will remain their preferred route, and they plan to resume transit through it once regional stability is restored.
Rabie concluded his remarks by highlighting the Suez Canal's initiatives to diversify its revenue streams and meet current demands by offering a range of new navigation services. These include fueling at the canal's entrances, pollution control, waste removal from ships, marine rescue, and ship maintenance and repair in the authority's dockyards, among others.
The Suez Canal is a crucial artificial waterway in Egypt that connects the Mediterranean Sea to the Red Sea. It provides the fastest and shortest maritime route between Europe and regions within the Indian Ocean, including Asia and Australia. This makes the canal a vital route for international trade, enabling faster and more efficient movement of goods between the Atlantic and Indian Oceans.