Suez Canal revenue falls as shippers avoid Red Sea routes

Shipping containers pass through the Suez Canal in Suez, Egypt February 15, 2022. REUTERS/Mohamed Abd El Ghany/File Photo

The Suez Canal's annual revenue fell nearly 25% in the latest financial year, as some shippers opted for alternative routes to avoid attacks by Iran-aligned Houthis in the Red Sea.

Osama Rabie, the he

ad of the Egyptian canal's authority said on Thursday, 18 July, revenues fell to $7.2bn in its 2023-24 financial year from $9.4bn the year before.

Since November, the Houthis have been attacking commercial vessels in the Red Sea and Indian Ocean to show support for Palestinian militant group Hamas in its fight against Israel.

Rabie said the number of ships using the canal fell to 20,148 in 2023-24 from 25,911 the year before.

The Suez Canal is a key source of foreign currency for Egypt, and authorities have been trying to boost its revenues in recent years, including via an expansion in 2015.