Red sea conflict slashes Egypt’s Suez Canal revenue

• Published On: 28 December 2024 at 08:35

Houthi attacks on ships in the Red Sea have severely disrupted global trade, costing Egypt approximately $7 billion in Suez Canal revenue for 2024.

These attacks forced shipping companies to reroute vessels, causing delays, increased shipping costs, and a significant economic impact on Egypt, which is heavily reliant on the canal for revenue.

President Abdel Fattah al-Sisi announced a revenue loss of approximately $7 billion over the previous fiscal year.

The sharp decline, with revenue down more than 60% from 2023, is attributed to a series of attacks on commercial vessels by Houthi fighters from Yemen.

These attacks are reportedly carried out in support of Palestinians during the ongoing Israeli-Palestinian conflict.

The ongoing aggression has forced shipping companies to avoid the Suez Canal, opting for longer and more expensive routes around Africa instead.

This shift has disrupted global trade, raising shipping costs and causing significant delays in deliveries worldwide.