Due to the crisis in the Red Sea, the Suez Canal's annual revenue fell by 10 billion yuan
Due to the crisis in the Red Sea, a large number of ships switched to other routes to avoid attacks by the Houthis in the Red Sea, and the Suez Canal's revenue fell by about 23.4 percent in the most recent fiscal year.
Osama Rabie, chairman of Egypt's Suez Canal Authority, said that due to the impact of the Red Sea crisis, the revenue of the Suez Canal in the fiscal year 2023 to 2024 was 7.2 billion US dollars (about 52.3 billion yuan), compared with the previous fiscal year's 9.4 billion US dollars (about 68.2 billion yuan), a decline of 23.4 percent.
Since November, Yemen's Houthis have been attacking ships in the Red Sea that they believe are linked to Israel in a show of solidarity with Palestinians under Israeli attack in the Gaza Strip.
Rabi said the number of ships passing through the canal in the 2023/24 fiscal year fell from 25,911 in the previous year to 20,148, and the total net tonnage fell from 1.5 billion tons to 1 billion tons.
The Suez Canal is an important source of foreign exchange for Egypt, and its tolls and related services are extremely important for Egypt's national income, infrastructure, employment and economic stability. Egyptian authorities have been trying to increase revenue from the Suez Canal in recent years, including an expansion of the canal in 2015.
The Suez Canal is also vital to global trade. The Suez Canal is the shortest shipping route between Europe and Asia. About 15% of the world's shipping traffic passes through the Suez Canal, carrying commodities such as oil and gas.
Rabi stressed that the ongoing tensions in the Red Sea will not only affect the Suez Canal, but also the global maritime transport market, trade flows and international supply chains, as the adoption of alternative routes will increase navigation times and operating costs.
Not only the traffic volume of the canal is affected, but also the investment attraction of the canal zone. A statement issued by Egypt's cabinet in May showed that the Suez Canal Economic Zone received 144 projects worth $3.2 billion between July 2023 and April 2024, down from $4.9 billion between July 2022 and May 2023.
In the first two months of 2024, trade through the Suez Canal fell by 50 percent compared to the same period last year.
In March, Walid Gamal El-Din, chairman of the General Directorate for the Management of the Suez Canal Economic Zone, revealed that out of 144 projects in the Suez industrial zone and port, 67 received final approval and 77 received preliminary approval.
Osama Rabie, chairman of Egypt's Suez Canal Authority, said that due to the impact of the Red Sea crisis, the revenue of the Suez Canal in the fiscal year 2023 to 2024 was 7.2 billion US dollars (about 52.3 billion yuan), compared with the previous fiscal year's 9.4 billion US dollars (about 68.2 billion yuan), a decline of 23.4 percent.
Since November, Yemen's Houthis have been attacking ships in the Red Sea that they believe are linked to Israel in a show of solidarity with Palestinians under Israeli attack in the Gaza Strip.
Rabi said the number of ships passing through the canal in the 2023/24 fiscal year fell from 25,911 in the previous year to 20,148, and the total net tonnage fell from 1.5 billion tons to 1 billion tons.
The Suez Canal is an important source of foreign exchange for Egypt, and its tolls and related services are extremely important for Egypt's national income, infrastructure, employment and economic stability. Egyptian authorities have been trying to increase revenue from the Suez Canal in recent years, including an expansion of the canal in 2015.
The Suez Canal is also vital to global trade. The Suez Canal is the shortest shipping route between Europe and Asia. About 15% of the world's shipping traffic passes through the Suez Canal, carrying commodities such as oil and gas.
Rabi stressed that the ongoing tensions in the Red Sea will not only affect the Suez Canal, but also the global maritime transport market, trade flows and international supply chains, as the adoption of alternative routes will increase navigation times and operating costs.
Not only the traffic volume of the canal is affected, but also the investment attraction of the canal zone. A statement issued by Egypt's cabinet in May showed that the Suez Canal Economic Zone received 144 projects worth $3.2 billion between July 2023 and April 2024, down from $4.9 billion between July 2022 and May 2023.
In the first two months of 2024, trade through the Suez Canal fell by 50 percent compared to the same period last year.
In March, Walid Gamal El-Din, chairman of the General Directorate for the Management of the Suez Canal Economic Zone, revealed that out of 144 projects in the Suez industrial zone and port, 67 received final approval and 77 received preliminary approval.
