Suez Canal revenues down over 20% due to Red Sea situation

Revenues from the operation of the Egyptian Suez Canal over the past year decreased by more than 20%, slightly exceeding $7 billion, according to the head of the Suez Canal Administration Osama Rabie, Report informs referring to TASS.

“The canal’s revenues for the past financial year 2023-2024 (ended June 30) decreased by 23%,” Rabie noted.

He added that the Suez Canal's revenues fell to $7.2 billion over the past year. Rabie pointed out that the financial performance of the canal was "most negatively affected by the tense situation in the southern part of the Red Sea "in connection with attacks by the rebel Yemeni Ansar Allah movement" on ships passing in this zone.

In early July, Egypt's Central Bank provided data showing that Suez Canal revenues fell to $5.8 billion in the first nine months of the fiscal year (July 2023 to March 2024), compared with $6.2 billion in the same period last year. Tensions in the Red Sea and decisions by shipowners to route their ships around the African continent without taking advantage of the Suez Canal were cited as the main reason.

At the same time, Rabie confirmed that “the canal administration pursues a flexible policy in the field of payment for the passage of ships through the canal and interacts on an ongoing basis with international companies on this issue.” He is convinced that the Suez Canal “remains the safest alternative for global trade and international shipping.”