Red Sea Turmoil: No Sustainable Alternative to Suez Canal

Despite attacks by Iran-backed Houthi militants disrupting shipping lanes, Suez Canal Authority assures the canal remains irreplaceable. The crisis resulted in a significant revenue loss for Egypt, highlighting the canal's importance to global trade.

Suez Canal Authority Chairman Osama Rabie confirmed that the recent Red Sea crisis has not created a sustainable alternative to the Suez Canal. Positive signs suggest stability might return to the region, easing the current disruptions in global trade routes.

Since November 2023, Iran-backed Houthi militants have been active in attacking vessels navigating through the Red Sea, significantly hampering global shipping by diverting numerous ships away from the Suez Canal.

The rerouting of trade around Africa has not only escalated shipping costs for insurers but has also significantly impacted Egypt's economy. President Abdel Fattah al-Sisi disclosed that revenue from the strategic waterway fell by over 60%, amounting to a $7 billion loss in 2024 compared to the previous year.

(With inputs from agencies.)