Suez Canal Revenues Plunge by 46% in January 2024

Revenues from international trade passing through the Suez Canal plummeted by 46% in January 2024. Revenues totalled $428 million, in contrast with $804 million in January 2023, while the number of ships using the crucial canal dropped 36% compared to the previous year.

Global geopolitical tensions and military action in the Red Sea, particularly in the narrow Bab Al Mandab strait off the Yemeni coast, has seen much of the international shipping traffic that would usually traverse the Suez Canal rerouted around the Horn of Africa.

The Egyptian government continues to be a key player in negotiations on the expanding regional conflict, making renewed efforts to assuage concerns about the impact of changes in international shipping on the country’s economy. Since the war on Gaza began, Houthis in Yemen have been targeting commercial vessels tied in any way to Israel.

US coalition forces have retaliated with numerous airstrikes across Yemen, stationing warships in the Red Sea itself. Meanwhile, as a direct result of avoiding the Suez Canal, international shipping costs have soared 310% compared to pre-conflict figures.