Suez Canal Traffic and Revenue Collapsed
The Suez Canal Authority (SCA) has revealed a catastrophic 23.4% decline in annual revenue for the fiscal year 2023/2024. This dramatic downturn is directly linked to the escalating Red Sea crisis. Heightened tensions in the region, primarily driven by the Israel-Yemen conflict, have compelled ship owners to avoid the Suez Canal in favor of longer, more expensive alternative routes.
As a result, vessel traffic through the canal has plummeted by nearly 22%, from 25,911 ships in the previous year to 20,048. This sharp decrease has translated to a devastating $2.2 billion revenue loss, dropping from $9.4 billion to $7.2 billion.
Global Trade Disrupted
SCA Chairman Osama Rabie has issued a stern warning about the severe threat posed by the Red Sea instability to global maritime trade. The crisis is leading to increased transportation times, escalating operational costs, and heightened environmental risks.
Despite these challenges, the canal authority remains committed to mitigating the crisis’ impact through service enhancements and open communication with its clients.
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