Suez Canal revenues “dropped by 40 to 50%” in 2024

A very severe blow to trade in the area. Egyptian President Abdel Fattah al-Sissi announced that revenues from the Suez Canal had “lowered by 40 to 50%” since the start of the year, a direct consequence of attacks by Yemeni Houthi rebels who have increased in the Red Sea since the beginning of December. The latter target ships linked to Israel, in support, they say, of the Palestinians in the Gaza Strip bombarded by the Israeli army. These attacks have pushed many shipowners to bypass Africa and suspend passages through the Red Sea and the Suez Canal, maritime routes where 12 to 15% of world traffic usually passes, according to the EU.

“You see what is happening on our borders (…) with Gaza, you see the Suez Canal which brought Egypt almost 10 billion dollars per year. [Ces revenus] have fallen by 40 to 50% and Egypt must continue to pay companies and partners”, declared Abdel Fattah al-Sissi during a conference alongside oil companies. This immense work inaugurated in 1869 brought in around 8.6 billion dollars to Egypt in the 2022-2023 fiscal year, a gigantic windfall in a country where importers and money changers are now struggling to find dollars.

In Egypt, which is going through the worst economic crisis in its history, canal revenues are as closely monitored as tourism revenues and remittances from Egyptian workers abroad. The volume of trade passing through the Suez Canal has fallen by 42% in the last two months, according to the UN, concerned about the repercussions for all of world trade. And the weekly number of container ship transits fell by 67% year-on-year. The drop in tanker transit is 18%, that of bulk cargo ships (grain, coal, etc.) is 6% and gas transport is at a standstill.