Suez Canal revenue nearly halved due to Red Sea crisis

Revenue from Egypt’s Suez Canal has nearly halved this year after Houthi attacks on shipping in the Red Sea forced many ships to divert around the Cape of Good Hope.

According to Egypt’s Al-Mal News, data released this week last month showed that the Suez Canal’s revenue fell 64.3% to around $337.8 million, compared to $648 million recorded in May 2023.

The number of ships passing through the canal in May also fell to 1,111, down from 2,396 ships passing through the canal in the same period last year. Due to the reduced ship traffic, the volume of cargo passing through the Suez Canal fell 68.5% last month to around 44.9 million tons. In May 2023, the total cargo tonnage was 142.9 million tons.

The director of the Suez Canal Authority (SCA), Osama Rabie, said in statements last week that the canal’s revenue fell to $428 million in January compared to $804 million in the same period last year. Ship traffic on the waterway has dropped by 30% compared to the same period in 2023, according to Suez Canal Authority chief Osama Rabie.

In the 2022/2023 financial year, the Suez Canal will earn a record $9.4 billion in revenue.

The Suez Canal Authority has extended toll discounts for a range of vessels on selected long-haul routes. The Suez Canal Authority initially introduced the toll discounts in January, with some discounts of up to 75% for product tankers and crude oil tankers on voyages between the Americas and Asia.

The new discount extension will be valid until the end of the year, covering 12 types of vessels including bulk carriers, container ships and LNG carriers.

Source: Phaata.com (According to SeatradeMaritime)