Egyptian President Abdel Fattah El-Sisi announced that the Suez Canal has experienced a significant loss in revenue due to ongoing regional instability. Speaking at a graduation ceremony for police academy students on Sunday, El-Sisi stated that the canal lost over 50-60% of its revenue in the past eight months, with total losses exceeding $6 billion.
“The developments in the region are extremely serious and may widen the conflict zone, affecting the area’s overall stability,” El-Sisi said.
The Suez Canal Authority reported a decline in revenues for the 2023/2024 fiscal year, driven by events in the Red Sea. According to mid-July statistics, 20,148 ships passed through the canal during the fiscal year, with net cargo tonnage of 1 billion tons, generating $7.2 billion in revenue. This is a decrease from the previous year, when 25,911 ships passed through with 1.5 billion tons of cargo, generating $9.4 billion.
Osama Rabie, Chairman of the Suez Canal Authority, attributed the decline to security concerns in the Red Sea, which prompted shipowners and operators to choose alternative routes. He noted that the canal is working to support its clients by introducing new services and maintaining direct communication to address the challenges.
Despite the setbacks, Rabie emphasized that the canal’s development strategy is progressing rapidly, aiming to enhance its capabilities, competitiveness, and global leadership in maritime routes.
