They were down 23.4% year-on-year at the end of June, to $7.2 billion in the 2023/2024 financial year.
Revenues from the Suez Canal in Egypt were down 23.4% year-on-year at the end of June, to $7.2 billion for the 2023/2024 fiscal year, following the « repercussions of the crisis in the Red Sea », the Canal Authority announced on Thursday.
The fiscal year in Egypt runs from the beginning of July to the end of June of the following year.
Since November, Yemen’s Houthi rebels have increased attacks on merchant ships in the Red Sea, disrupting global maritime trade in this strategic waterway.
« The canal recorded the passage of 20,148 ships during the 2023/24 fiscal year, generating revenues of $7.2 billion, compared to 25,911 ships during the 2022/23 fiscal year, with revenues of $9.4 billion, » stated the Suez Canal Authority in a communiqué.
Severe Impact
Cited in the communiqué, the president of the public body that administers the canal, Osama Rabie, attributed this decline to « the severe impact of the Red Sea crisis on canal traffic, as security issues prompt many shipowners and operators to take alternative routes. »
The use of these alternative routes has « led to an increase in travel times and costs, » he recalled.
In February, President Abdel Fattah al-Sissi announced a 40 to 50% decrease in canal revenues due to disruptions caused by repeated Houthi attacks, who claim to act in solidarity with Palestinians in Gaza, a territory bombarded by Israel since October.
Egypt is experiencing a severe economic crisis fueled by a shortage of foreign currency and is facing the geopolitical consequences of two conflicts on its doorstep: the war between Israel and Hamas in Gaza and the conflict in Sudan.
Revenues from the Suez Canal, which handles 10% of global maritime trade, are one of the main sources of foreign currency for the country.
Source: BFMTV
