Disruptions in the Red Sea continue to slow down Suez Canal operations, further jeopardising revenue forecasts and the timely implementation of plans to extend this strategic zone for world trade and the Egyptian economy.
The overall tonnage of ships transiting the Suez Canal decreased by 15.6% year-on-year in the first 9 months of the 2023/2024 financial year, which began on 1 July 2023. Over the period to the end of March 2024, cumulative net tonnage stood at 944.9 million tonnes, according to data from the Central Bank of Egypt (CBE).
The drop in volumes hit revenues, which fell by more than 7.4% to USD 5.80 billion, compared with USD 6.20 billion the previous year. In the third quarter of the financial year (January to March 2024), on the other hand, revenues fell by 57.2% year-on-year, from USD 2.2 billion to USD 959.3 million.
“This underperformance is mainly due to the disruption of maritime traffic in the Red Sea, which forced several commercial shipping companies to divert their shipping routes,” commented the CBE.
Since November 2023, when the Yemeni Houthi rebels were rampaging through this maritime corridor, the Cape of Good Hope, located at the southernmost tip of South Africa, has become the main alternative for several shipowners, particularly oil tankers, fleeing repeated attacks and kidnappings of ships and crew.
According to recent data, the movement of crude oil and petroleum product cargoes around the Cape of Good Hope reached 8.7 million barrels per day between January and May 2024. This represents an increase of around 50% on last year.
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