The Suez Canal’s annual revenue dropped by almost a quarter in its latest financial year as ships diverted routes to avoid attacks by Iran-aligned Houthis in the Red Sea.
Osama Rabie, the head of the Egyptian canal’s authority said on Thursday that revenues fell to $7.2 billion in its 2023/24 financial year, from $9.4 billion the previous year.
Since November, the Houthis have been attacking commercial vessels in the Red Sea and Indian Ocean to show support for Palestinian militant group Hamas in its conflict with Israel.
Rabie said the number of ships using the canal fell to 20,148 in 2023/24, down from 25,911 the year before.
Shipping groups have diverted vessels around Africa’s Cape of Good Hope since December in an effort to avoid attacks.
The Suez Canal is a key source of foreign currency for Egypt, and authorities have been trying to boost its revenues in recent years, including through an expansion in 2015.
‘Cascading Impact’
Danish shipping company AP Moller-Maersk (Maersk) said in a statement on Wednesday that disruption to its container shipping via the Red Sea has extended beyond trade routes between the Far East and Europe to its entire global network.
Maersk said in its statement, ‘The cascading impact of these disruptions extend beyond the primary effected routes, causing congestion at alternative routes and transshipment hubs essential for trade with Far East Asia, West Central Asia, and Europe.
‘Ports across Asia, including Singapore, Australia and Shanghai, are experiencing delays as ships reroute and schedules are disrupted, caused by ripple effects from the Red Sea.
‘The delays in Southeast Asian hubs pose a risk of disruption at Australian ports due to vessel bunching on arrival, resulting in longer waiting times and other delays.
‘The congestion and disruption have extended beyond the hubs and into Northeast Asia and Greater China ports, causing delays.
‘We are preparing for continued disruptions by adjusting our network and supply strategies accordingly.’
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