Suez Canal Revenue Drops Amid Red Sea Attacks

The Suez Canal's revenue plummeted by nearly a quarter in the 2023-24 financial year due to alternative shipping routes amid attacks by Iran-aligned Houthis. The Canal's revenue fell from $9.4 billion to $7.2 billion, with the number of ships decreasing significantly. Authorities are striving to boost revenues.

The Suez Canal's annual revenue saw a nearly 25% decline in the 2023-24 financial year as several shippers opted for alternative routes to avoid attacks from Iran-aligned Houthis in the Red Sea.

According to Osama Rabie, head of the Egyptian Canal Authority, revenues fell to $7.2 billion from the previous year's $9.4 billion. Since November, Houthis have been targeting commercial vessels in the Red Sea and Indian Ocean to demonstrate support for Palestinian militant group Hamas against Israel.

The number of ships traversing the canal dropped to 20,148 this financial year, down from 25,911 the year before. Crucial for Egypt's foreign currency reserves, the Suez Canal's authorities have been working to increase revenues, including through expansion efforts launched in 2015.

(With inputs from agencies.)