Egypt's Suez Canal Authority (SCA) has reported that the Suez Canal's annual revenue decreased by approximately 23.4 per cent. The authority said this was one result of some shipping companies having opted to sail along alternate routes following repeated attacks by Yemen's Iran-backed Houthi rebel group on commercial vessel traffic in the Red Sea.
SCA Chairman Osama Rabie said the canal generated US$7.2 billion in revenue during the 2023-2024 financial year ending June 30, a drop of around US$2.2 billion from that of the previous financial year. The number of ships using the canal also decreased, with 20,148 vessels recorded in 2023-2024, or 5,763 less than in the preceding year, and the volume of cargo that passed through the vital 190-kilometre waterway in 2023-2024 was 500 million tonnes fewer than in 2022-2023.
The decreases have been blamed on security challenges, particularly the attacks by the Houthis against commercial shipping in the Red Sea and the Indian Ocean. The group has been regularly targeting vessels since November of last year as a show of support for Palestinian militant organisation Hamas amid ongoing hostilities with Israel.
Mr Rabie said the security challenges have also impacted the broader shipping industry as well as supply chains and the movement of trade as the use of alternate routes leads to longer voyages, which then results in higher costs. However, he assured that appropriate security measures are in place such as new navigational services for clients.
