Suez Canal Authority dismisses Red Sea route as sustainable alternative

Osama Rabie, Chairman of the Suez Canal Authority, speaks during an interview with Reuters in his office in the city of Ismailia, Egypt April 6, 2021. REUTERS/Mohamed Abd El Ghany/File Photo

Iran-backed Houthi militants have attacked vessels in the Red Sea area since November 2023, disrupting global shipping lanes by forcing vessels to avoid the nearby Suez Canal and reroute trade around Africa, raising the costs for insurers.

Egyptian President Abdel Fattah al-Sisi said in December the disruption cost Egypt around $7bn in revenue from the Suez Canal in 2024, a drop of more than 60% from its revenue a year before from the canal, Sisi said.