Join our crew and become one of the 108,866 members that receive our newsletter.

Indian Navy's guided missile destroyer INS Visakhapatnam responds as smoke rises from Marlin Luanda, at the location given as Gulf of Aden. Handout via REUTERS

Indian Navy's guided missile destroyer INS Visakhapatnam responds as smoke rises from Marlin Luanda, merchant vessel, after the vessel was struck by a Houthi anti-ship missile, at the location given as Gulf of Aden, in this handout picture released January 27, 2024. @indiannavy via X/Handout via REUTERS

Red Sea Diversions Cost Egypt $7 Billion in Lost Canal Revenue

Bloomberg
Total Views: 831
December 26, 2024

By Tarek El-Tablawy and Abdel Latif Wahba (Bloomberg) —

Red Sea disruptions — a consequence of Houthi maritime attacks — have cost Egypt at least $7 billion in Suez Canal revenue this year, the country’s presidency said in a statement Thursday.

Revenue from the vital international waterway is down over 60%, the statement said, without providing total figures.

The Houthi attacks have hit Egypt hard since they began in late 2023. The Yemen-based militant group hasn’t targeted Egyptian assets, but it has effectively closed the southern Red Sea and parts of the Gulf of Aden to most Western shipping firms, stopping them from using the Suez Canal to move goods between Europe and Asia.

The Suez Canal is a vital source of foreign exchange for the $380 billion Egyptian economy, whose currency slid to a record low in the past month.

As well as assaulting ships, the Houthis are firing drones and missiles on Israel. They say they won’t stop until Israel agrees to a ceasefire with Hamas in Gaza.

© 2024 Bloomberg L.P.

Unlock Exclusive Insights Today!

Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.

Sign Up
Back to Main
close

JOIN OUR CREW

Maritime and offshore news trusted by our 108,866 members delivered daily straight to your inbox.