Ship traffic through the Suez Canal declined 30% between 1-11 January compared to the same period last year, due to political tensions and the successive Yemen blockade against Israeli-linked vessels.
The head of the Canal Authority, Osama Rabie, told MBC Masr that security concerns have led commercial ships to take longer routes rather than enter a war zone. He added that reducing customs duties would not help entice ships back through the Egyptian waterway.
In October, the Suez Canal Authority raised transit fees by about 15% on some tankers, including those carrying crude oil and petroleum products.
The impact of the crisis on global shipping is significant, leading to a slowdown in supply chains. What is happening reminds us of the period during the Coronavirus pandemic. Ships do not move, and if they move, they arrive late, he added.
The decline in traffic has led to revenues being 40% lower this year than during the same period last year, he explained.
The decline in canal revenues comes at a time when Egypt is suffering from a major economic crisis and is in talks with the International Monetary Fund (IMF) about new loans, in addition to the $12 billion the financial body has already agreed to.
Middle East Monitor / ABC Flash Point News 2024.
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