Red Sea crisis: Suez Canal reports 23.4 per cent drop in annual revenue

Cairo: The Egyptian Suez Canal's annual revenue dropped by about 23.4 per cent in the fiscal year 2023/2024 due to the Red Sea crisis, Osama Rabie, chairman of the Suez Canal Authority (SCA), said in a statement on Thursday.

"Revenues fell to 7.2 billion U.S. dollars in the fiscal year 2023/2024 that ended in June from 9.4 billion U.S. dollars a year earlier," Rabie said.

He added that the number of crossing ships fell to 20,048 in the fiscal year 2023/2024, compared with 25,911 in the fiscal year 2022/2023, Xinhua news agency reported.

The chairman attributed the decline in revenues to the security challenges in the Red Sea, which led many vessel owners and operators to take alternative routes.

He stressed that the ongoing tensions in the Red Sea affect not only the Suez Canal but also the maritime transportation market, trade movement, and international supply chains, as taking alternative routes increases the voyage time and the operation costs.

Since November of last year, Yemen's Houthi group has been targeting ships in the Red Sea that it claims are connected to Israel as a demonstration of solidarity with Palestinians facing Israeli assaults in the Gaza Strip.

The canal, carrying 12 percent of global trade, is a crucial source of foreign currency for Egypt, a country still grappling with persistent economic woes.