Egypt: Houthi attacks cut Suez revenues by 40%
Houthi attacks have led to a 40% drop in Suez Canal Dollar revenues, according to Reuters.
Head of the canal authority Osama Rabie cited a 30% reduction in overall ship traffic, in a TV interview on January 11th
Only 544 vessels passed through the canal from January 1st to the 11th, compared to 777 over the same period in 2023.
The decline comes as Yemen’s Iran-backed Houthis attack commercial vessels in the Red Sea. The group has been acting in solidarity with the Palestinian militant group Hamas since late 2023, in an attempt to hinder Israel’s war in Gaza.
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With many commercial ships diverted via alternative routes, a US-led mission has been launched against the Houthis to deter attacks.
Rabie said that some ships have been diverted around the Cape of Good Hope, with others standing by for the situation to stabilise. The Egyptian official added that shippers’ security concerns could not be overcome with discounts offered by the canal and stated: “A very large portion of the goods will return (to the Canal) once this matter is finished.”
The Suez Canal is a significant source of foreign currency for Egypt, which the government has been set on increasing in recent years via ongoing expansion projects.
REUTERS
