Houthi armed attacks caused many major shipping companies to suspend Red Sea routes (data map)
Cairo, Egypt:
Egyptian President Abdel Fattah al-Sisi said on Monday that revenue from the Suez Canal has been “reduced by 40 to 50%” so far this year due to attacks on shipping by Yemen’s Houthi rebels.
The canal is one of the main sources of foreign exchange for Egypt, which is suffering from a severe financial crisis.
The Iran-backed Houthis have launched multiple attacks on ships in the Gulf of Aden and the Red Sea since November, which the group said targeted vessels linked to Israel in solidarity with the Palestinians in the war-torn Gaza Strip. people.
The attacks caused several major shipping lines to suspend routes in the Red Sea, which normally carries about 12% of global trade, and divert ships thousands of miles around Africa.
“Look at what’s happening on our borders… In Gaza, you see the Suez Canal, which used to bring nearly $10 billion a year to Egypt, (those revenues) have been reduced by 40 to 50 percent, and Egypt must continue to Companies and businesses pay. Partners,” Sisi said at a meeting with oil companies.
The United Nations said in late January that the total number of ships passing through the Suez Canal, which connects the Red Sea and the Mediterranean Sea, had dropped by 42% in the past two months.
According to the United Nations Conference on Trade and Development (UNCTAD), the number of container ships passing through the Suez Canal each week fell by 67% year-on-year, oil tanker traffic fell by 18%, and transits of bulk carriers carrying grain and coal fell by 6%. , natural gas transportation came to a standstill.
The landmark project, which opened in 1869, raised some $8.6 billion for Egypt in the 2022-23 financial year, in addition to tourism and remittances in a country where importers and money changers struggle to obtain dollars. An important source of foreign exchange for Egypt.
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