Officials announced Wednesday that Egypt’s Suez Canal revenue plunged by nearly two-thirds in 2024, citing escalating regional tensions and ongoing Middle East conflicts as the primary causes of the sharp decline in maritime traffic through the vital waterway.
The Suez Canal, a key artery for international trade, has long been a critical source of foreign currency for Egypt. In recent years, approximately 10% of global trade has passed through the canal.
According to a statement posted on the Suez Canal Authority’s official Facebook page, annual revenues from the waterway dropped to $3.991 billion in 2024—down sharply from a record-breaking $10.25 billion in 2023.
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Traffic through the canal has been heavily impacted since Yemen’s Iran-backed Houthi rebels began targeting commercial vessels in the Red Sea. These attacks, aimed at pressuring Israel to halt its war in Gaza which began on October 7, 2023, have disrupted shipping routes to and from the canal.
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Between November 2023 and January 2024 alone, the Houthis launched missile and drone attacks on over 100 merchant ships, sinking two and killing four sailors. The group has pledged to continue its campaign for as long as the regional conflicts persist, creating widespread instability for maritime operations.
The canal authority reported that just 13,213 ships passed through the Suez in 2024, a staggering 50% decline from the more than 26,000 vessels recorded the previous year.
Despite the turmoil, Suez Canal Authority Chairman Osama Rabie affirmed Egypt’s continued commitment to maintaining its maritime and navigational services.
“These attacks challenge the region but have not prevented Egypt from continuing to provide its navigational and maritime services in the Suez,” he stated.
The International Monetary Fund echoed these concerns in a March 2024 report, noting a 50% drop in Suez Canal trade volume during the first two months of the year, citing the security crisis in the Red Sea as a major contributing factor.
In 2015, Egyptian President Abdel Fattah el-Sissi’s government completed a major expansion of the Suez Canal, which included the construction of a second shipping lane and upgrades to accommodate some of the world’s largest vessels.
First opened in 1869, the canal links the Mediterranean Sea with the Red Sea, serving as a vital corridor for oil, natural gas, and global cargo. The authority currently operates a daily convoy system, with one northbound and one southbound convoy scheduled each day, according to an AP report.
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