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In January Suez Canal Authority chairman Osama Rabie said dollar revenues from the Suez Canal were down 40% since the start of the year after attacks forced global shippers to opt for longer but safer routes
Egyptian Prime Minister Mostafa Madbouly has said the Suez Canal is reporting losses of up to USD 550 million per month due to ongoing regional conflicts in the Red Sea. In January Suez Canal Authority chairman Osama Rabie said dollar revenues from the Suez Canal were down 40% since the start of the year after attacks forced global shippers to opt for longer but safer routes.
While no breakdown was given on the canal’s revenue contribution, the Suez Canal Economic Zone’s revenue hit EGP8.5 billion in 2023-24, surging 205% from EGP2.8 billion in 2016-2017.
Chinese investments in the economic zone have reached nearly USD 3 billion through 155 industrial, logistical and service companies. The economic zone has also signed 29 memorandums of understanding with various international companies specialising in green hydrogen, which could draw investments worth USD 133 billion.
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This month Danish shipping major Maersk CEO Vincent Clerc said disruption in the Red Sea is expected to stretch into the third quarter of 2024, making the situation challenging for carriers and businesses. In May Marek said that the Red Sea disruption had resulted in a 15 to 20% industry-wide capacity loss on the Asia to North Europe and Mediterranean routes in the second quarter of 2024.
