In the first eleven days of January, the revenue of the Suez Canal witnessed a significant 40% decline, according to the Suez Canal Authority (SCA). The reduction in income is attributed to the conflict in the Red Sea region, compelling carriers to reroute operations away from the canal towards safer shipping routes.
Confirming the stark statistics, the SCA reported a simultaneous 30% year-on-year drop in ship traffic between January 1 and January 11. A total of 544 ships, encompassing various types, traversed the canal during this period, marking a substantial decrease from the 777 ships recorded in the same timeframe in 2023. However, no additional updates have been provided regarding traffic or revenue figures since the initial report.
Contrary to earlier rumors circulating in January, suggesting the suspension of canal transits due to the regional hostilities disrupting shipping operations, SCA Chairman and Managing Director, Ossama Rabiee, promptly dispelled such claims. Rabiee asserted that navigational services were operating normally.
Given the canal’s vital role as a source of foreign exchange revenue for Egypt, Rabiee acknowledged the challenging circumstances faced. He highlighted that neither discounts nor other incentives were proving sufficient to attract customers amid the current situation. The ongoing conflict in the Red Sea region continues to impact the operations and financial performance of the Suez Canal, a critical waterway for global maritime trade.