Houthi Attacks Reduce Egypt's Suez Canal Revenue by a Quarter

Houthi attacks, allied with the Islamic Republic of Iran, on ships in the Red Sea over the past nine months have reduced Egypt's revenue from the strategic Suez Canal by a quarter. These attacks have disrupted global shipping through the Suez Canal, forcing shipping companies to choose longer and more expensive routes around the southern tip of Africa. On Thursday, July 28, the head of the Suez Canal Authority stated that Egypt's revenue from the Suez Canal for the fiscal year 2023-2024 decreased from $9.4 billion the previous year to $7.2 billion, resulting in a loss of $2.2 billion for Egypt during this period. Osama Rabie, the Egyptian official responsible for the canal, announced that the number of ships passing through the canal in the past year decreased to 20,148, while 25,911 ships had entered the canal the previous year. The Suez Canal, which connects the Red Sea to the Mediterranean Sea, is a key source of foreign currency income for Egypt, second only to tourism revenue. The disruption in Maersk shipping has spread throughout the company's entire network. This man-made canal has shortened the route for commercial ships since its inception over a century and a half ago and is considered the fastest shipping route between Europe and Asia. Egypt has always sought to increase its revenue from this waterway and has been developing the canal for the past nine years under President Abdel Fattah el-Sisi. The Egyptian finance minister previously stated that in the first six months of Houthi attacks on ships in the Red Sea and the Suez Canal, the country's revenue from the canal dropped by 60%. In the fiscal year 2022-2023, Egypt's revenue from the Suez Canal reached a historic peak of $9.4 billion. The Houthi rebels, who have controlled parts of Yemen since 2014, have been launching missile and drone attacks on shipping lines in the Red Sea and the Gulf of Aden for months, claiming to support the Palestinians in Gaza. They consider these attacks retaliation for Israeli strikes on the Gaza Strip. The Houthis have targeted over 70 ships with missile and drone strikes, resulting in the deaths of four sailors. Since November, they have seized one ship and sunk two others.