Affected by the Red Sea crisis, the revenue of the Suez Canal in May decreased by nearly 50% year-on-year

According to a report by Al Al News, citing Egyptian media, the revenue from the Suez Canal decreased by 48% from $648 million in May 2023 to $337.8 million in May.

The number of ships passing through the Suez Canal in May this year has also decreased to 1111, a 54% decrease from the 2396 ships in the same period of 2023. The freight volume decreased by over 68% year-on-year, from 142.9 million tons to 44.9 million tons.

The website FreightNews quoted The Maritime Executive as reporting that the Suez Canal Authority (SCA) in Egypt has extended a series of discounts for ships in specific long-distance trades.

In January of this year, SCA began implementing fee reduction measures, offering discounts of up to 75% for product oil tankers and crude oil transport ships sailing between the Americas and Asia. The validity period of the new round of discounts will continue until the end of 2024, and the scope of application includes 12 types of ships such as bulk carriers, container ships, and liquefied natural gas ships.

In addition, in preparation for the Egypt International Yacht Show, SCA will offer a 50% discount on transit fees for yachts under 300 tons from July to October.

Egyptian Finance Minister Mohamed Maite warned in February this year that the prolonged tension in the Red Sea could widen revenue losses and potentially drag down the country's finances due to fluctuations in the US dollar exchange rate.

It is reported that the toll fees of the Suez Canal can bring Egypt billions of dollars in revenue every year, becoming one of the four major pillars of foreign exchange in Egypt, alongside remittances, tourism, and oil.