30 July 2024
Freight News

Suez Canal Revenue Dropped $2 Billion Last Year Due to Red Sea Security Crisis

The Suez Canal Authority saw its revenue drop by about $2 billion year-over-year because of the traffic impact of Houthi attacks in the Red Sea, the agency said Thursday.

In FY 2023/24, the SCA’s revenue fell to $7.2 billion from $9.4 billion the prior year, a drop of about 23 percent. The total tonnage passing through the canal fell by a third, and the number of transits declined by about 22 percent year-over-year.

As the Houthi attacks only began in earnest in November 2023, after half of the SCA’s fiscal year had passed, the numbers partially reflect business-as-usual performance last summer and fall. Current traffic levels are less encouraging, and suggest that FY 2024/25 numbers will be even lower unless the security situation improves.

The canal is a key source of revenue for the government of Egypt, and it is one of the country’s top earners of foreign currency.

Read more in an article from The Maritime Executive.

 

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