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The
canal is a major source of foreign currency for the Egyptian
government, with about 10% of world trade flowing through the
waterway in recent years.
The Suez Canal Authority, which runs the waterway, said the
canal generated an annual revenue of $3.991 billion in 2024,
down from a historic high of $10.25 billion in 2023, according
to a statement posted on its Facebook page.
Canal traffic has been significantly disrupted after Yemen’s
Iran-backed Houthi rebels started to threaten maritime trade and
targeting vessels heading to Israel through the Suez Canal to
pressure Israel to stop the war in Gaza, which started on Oct.
7, 2023.
Between November 2023 and January 2024, the Houthis targeted
over 100 merchant vessels with missiles and drones, sinking two
ships and killing four sailors. The rebels insisted the attacks
would continue as long as the wars go on and have devastated
shipping through the region.
According to the Egyptian canal authority, only 13,213 ships
passed through the canal in 2024, marking a 50% decline compared
to the number of ships in 2023, when over 26,000 ships passed
through.
Still, canal authority chief Osama Rabie said that the attacks
challenge the region but have not prevented Egypt from
continuing to provide its navigational and maritime services in
the Suez.
The International Monetary Fund reported in March 2024 that the
Suez Canal trade dropped by 50% in the first two months of that
year, compared to the previous year, citing attacks on vessels
in the Red Sea.
Egyptian President Abdel Fattah el-Sissi’s government in 2015
completed a significant expansion of the Suez Canal, adding a
second shipping lane and allowing it to handle some of the
world’s largest vessels.
The canal, which connects the Mediterranean and the Red seas,
was opened in 1869. It serves as a vital artery for global trade
— a crucial link for oil, natural gas and cargo. The canal
authority operates a system of convoys, consisting of one
northbound and one southbound per day.
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