AhlulBayt News Agency

source : MNA
Monday

5 February 2024

4:31:00 AM
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Egypt's Suez Canal receipts fall by half after Red Sea attacks

Egypt's Suez Canal revenue plunged by almost half in January, a top official said, after attacks by Yemeni militants on Red Sea vessels

AhlulBayt News Agency: Egypt's Suez Canal revenue plunged by almost half in January, a top official said, after attacks by Yemeni militants on Red Sea vessels

Income was about $428 million last month compared with $804 million for the same period in 2023, Suez Canal Authority chief Osama Rabie told an Egyptian TV talk-show on Friday evening, according to Bloomberg report. The number of ships navigating the canal fell 36 percent, he said.

The drop is the latest headache for the North African nation that was already wrestling with its worst economic crisis in decades before the Israeli war on Gaza  erupted in October and threatened to disrupt trade and tourism.

The armed forces in Yemen, who began attacking merchant shipping in response to the conflict in Gaza, are showing no let-up even after the US and allies began air-strikes on Jan. 12 to deter them.

The Suez Canal, the shortest sea route between Asia and Europe, is an important source of foreign currency for Egypt and netted some $10.25 billion in 2023. Before the violence that’s caused firms including A.P. Moller - Maersk A/S and Hapag-Lloyd AG to divert, the country had been working on expanding the waterway.

“This is the first time the Suez Canal is involved in a crisis like this,” Rabie said. “We used to find every month better than the previous and every year better than the ones before.”

Egypt is nearing a deal with the International Monetary Fund that may more than double its current $3 billion rescue package and bring in other partners.

Yemenis have declared their open support for Palestine’s struggle against the Israeli occupation since the regime launched a devastating war on Gaza on October 7 after the territory’s Palestinian resistance movements carried out a surprise retaliatory attack, dubbed Operation Al-Aqsa Storm, against the occupying entity.

Yemeni Armed Forces have said they won’t stop their attacks until ground and aerial offensives by Israel in Gaza end. The regime has killed nearly 27,000 people in Gaza since October 7.


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