Egypt's Suez Canal revenues plunge by 46% in January 2024

By Al Mayadeen English
Source: Agencies
3 Feb 2024 21:51
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Admiral Osama Rabiee informed reporters that January revenues in 2023 totaled roughly $804 million, in contrast to this year's January revenues of $428 million, amounting to a massive 46% decline.

A cargo ship sails through the town of Ismailia, Egypt, March 30, 2021 (AP Photo/Ayman Aref, File)

The chairman of Egypt's Suez Canal Authority on Saturday reported that revenues for the month of January 2024 witnessed a massive decrease of 46% compared to the same period in 2023.

"In January of last year, we saw revenues of $804 million, versus $428 million this year, which means a loss of 46%," Admiral Osama Rabiee told the Egyptian-based broadcaster ON.

The quantity of vessels traversing the crucial waterway, linking the Red Sea to the Mediterranean, experienced a 36% decline last month compared to January 2023.

This comes at a time when US-instigated escalations in the Red Sea have dramatically altered global shipping dynamics.

On January 17, The Times reported that Egypt is making renewed efforts to facilitate a deal between "Israel" and Hamas due to concerns about the impact of international shipping in the Red Sea on Egypt's economy.

In November 2023, the Yemeni resistance announced its intent to target commercial ships and vessels that are solely tied to the Israeli regime. The move was initiated in response to the Israeli-led genocide on Gaza, which has so far resulted in more than 27,000 martyrs.

Transit in the Red Sea remained relatively smooth for the remainder of the ships until the US announced in December 2023 the formation of a naval coalition intended to target Yemeni positions along the Yemeni coastline.

As a result of escalations, several shipping companies were compelled to reroute container ships around southern Africa, which also led to global shipping costs skyrocketing by 310%.

The latest aggression occurred overnight as UK and US warplanes conducted three airstrikes on the eastern part of the city of Saada in the North.

This aggression follows the launch of seven airstrikes on the al-Jar area in the Abs district of the Hajjah Governorate on Friday, as reported by Al Mayadeen's correspondent.

The coastal city of Hodeidah on the Red Sea in western Yemen was subjected to multiple airstrikes at dawn on Thursday. American and British warplanes carried out the raids targeting various areas within the city.