Suez Canal transit receipts drop by 7.4% in first 9M of FY23/24 amid Houthi attacks: CBE

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Tue, 09 Jul 2024 - 03:34 GMT

BY

Tue, 09 Jul 2024 - 03:34 GMT

Cairo – July 9, 2024: Egypt’s Suez Canal’s transit receipts saw a dip of 7.4 percent year-on-year (YoY) during the first 9 months of FY2023/2024 (July 2023 – March 2024) amidst continued Rea Sea traffic disruptions.

The waterway’s total revenues during the period were recorded at $5.8 billion, down from $6.2 billion in the previous year, according to the latest data from the Central Bank of Egypt (CBE).

The number of transiting vessels dropped by 11.5 percent, with net tonnage passing through the canal falling by 15.6 percent to close the first 9 months of the fiscal year at 944.9 million tons.

Suez Canal revenues declined by 57.2 percent during Q3 of FY2023/2024 (January – March 2024) to register $959.3 million, compared to $2.2 billion reported in Q3 of FY2022/2023.

“This decrease stemmed primarily from the Red Sea traffic disruptions, which forced several commercial shipping companies to divert their shipping routes," said the CBE.

Since the start of attacks on targeted vessels traveling through the Red Sea by the Houthi Group, the Suez Canal has seen a significant drop in revenues and traffic as many shipping companies rerouted around South Africa’s Cape of Good Hope.

In June, the Suez Canal Authority announced it would increase fees for vessels utilizing the canal's electronic services to $300, up from $50, effective 1 September 2024. Fees are expected to climb once more in January 2025 to $500. The current $50 fee will remain in place till the end of August 2024. 

The Suez Canal, which moves 12 percent of all world trade, is one of the main sources of foreign currency for Egypt.

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