In Egypt, Houthi rebels siphon revenues from the Suez Canal | EUROtoday

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LRevenues from the Suez Canal have plunged because the begin of the yr, falling between 40% and 50%, in keeping with figures given by Egyptian President Abdel Fattah al-Sissi on Monday February 19.
This dizzying fall is because of repeated assaults by Yemeni Houthi rebels within the Red Sea towards service provider ships passing by way of the canal. The group says it acts in assist of Palestinians bombed because the Hamas terrorist assault in Israel.

You see what is happening at our borders […] with Gaza, you see the Suez Canal which brought Egypt almost 10 billion dollars a year, (these revenues) have fallen by 40% to 50% and Egypt must continue to pay companies and partners »declared President al-Sissi during a conference alongside oil companies.

A strategic trade node for global trade

This slump has serious consequences for Egypt, since the work alone brought in 8.6 billion dollars to the country in 2022. That is to say the third source of income after tourism (13.6) and shipments of money through the diaspora (9.9). While it represents a seventh of global traffic, commercial activity on the canal has plummeted by 42% in the last two months, according to the UN.

Already at the end of January, UNCTAD, the UN body responsible for trade and development, had alerted through the voice of one of its officials, Jan Hoffmann: “We are very worried about the attacks on maritime transport in Red Sea […] which exacerbate trade disruptions linked to geopolitics and climate change. »

READ ALSO “Vital arteries of maritime trade are affected by geopolitical tensions” Over one yr, the weekly variety of container ship transits even collapsed by 67%. “As the largest container ships are mainly those which no longer use the Suez Canal, the decline in the quantity of containers is even more significant,” defined Jan Hoffman. In element, the transit of oil tankers has decreased by 18% and that of bulk cargo ships (grain, coal, and so forth.) by 6% whereas gasoline transport has come to a standstill. Thirteen of the world's main shipowners have diverted their ships in direction of the Cape of Good Hope, on the tip of South Africa, to keep away from the canal.

Egypt had counted on $10 billion in revenues in 2024, whereas the widening of the canal in 2021 had already generated file revenues final yr.