The Suez Canal is an important source of hard currency for Egypt (Suez Canal Media Office)
Yesterday, Thursday, the International Monetary Fund announced that the volume of trade in the Suez Canal would decline by 50% during the first two months of the year 2024 as a result of the attacks in the Red Sea.
The IMF explained in a statement that international trade has been disrupted in the past few months as a result of disturbances in the most important maritime trade route, through which about 15% of global maritime trade usually passes, according to what Anadolu Agency reported.
He added that some maritime transport companies changed their course from the Red Sea and the Suez Canal towards the Cape of Good Hope, which led to an increase in delivery times by an average of 10 days or more.
He stated that the volume of trade in the Suez Canal decreased by 50% in the first two months of the year 2024 compared to the same period last year, while the increase through the Cape of Good Hope was estimated at a rate of 74%.
This came while Egyptian Finance Minister Mohamed Maait said yesterday, Thursday, that Suez Canal revenues had decreased by 50%, but he did not provide a time frame for that.
Egyptian President Abdel Fattah El-Sisi said last month that the Suez Canal, which used to generate approximately $10 billion annually, “has declined by 40 to 50% since the beginning of this year.”
The Suez Canal is considered one of the most important canals and straits in the world, and about 12% of global trade is carried out through it. It is the shortest shipping route between Europe and Asia, and is considered one of the main sources of hard currency for Egypt.
The Houthis target, with missiles and drones, Israeli cargo ships or those linked to them in the Red Sea. They say that this comes in solidarity with the Gaza Strip, which is facing a devastating Israeli war with American support.
Source: Agencies