Suez Canal Navigation Experiences Growth in March, Says Canal Chief
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Synopsis
The Suez Canal Authority Chairman, Osama Rabie, reported a 2.4% increase in ship traffic and an 8.8% revenue rise in March compared to January. Despite regional tensions and attacks on vessels by Houthis, efforts continue to enhance the canal's competitiveness.
Key Takeaways
- 2.4% increase in ships passing through the canal.
- 8.8% rise in canal revenue compared to January.
- 264 ships rerouted to Suez Canal from Cape of Good Hope.
- Regional unrest impacting revenue, estimated loss of $800 million.
- Future projects to improve canal competitiveness.
Cairo, April 17 (NationPress) The Chairman of the Suez Canal Authority (SCA), Osama Rabie, reported a modest enhancement in navigation through the canal during March.
The count of vessels traversing the canal in March rose by 2.4 percent in comparison to January, Rabie disclosed on Wednesday at a celebration in Ismailia Governorate in northeastern Egypt, recognizing the canal's accomplishments over recent years, according to Xinhua news agency.
He further stated that the waterway experienced an 8.8 percent increase in revenue relative to January.
The SCA chairman also highlighted that 264 ships altered their courses to navigate through the Suez Canal instead of the Cape of Good Hope since early February.
Rabie mentioned, "The US is presently engaging the Houthis in Yemen, and it is uncertain whether these US actions have diminished the Houthis’ capability to target maritime traffic in the Red Sea," as reported by Xinhua.
Egypt, which is significantly dependent on earnings from the Suez Canal, has consistently urged for tranquility following various attacks on commercial ships in the Red Sea.
In March, President Abdel Fattah al-Sisi of Egypt indicated that due to the regional unrest—comprising assaults on ships in the Red Sea by the Houthis—the Suez Canal is incurring a loss of nearly $800 million in revenue each month.
The US military has recommenced airstrikes on Houthi-controlled regions in northern Yemen since March 15, aiming to deter the group from targeting Israeli interests, the US Navy, and international shipping routes in the area.
Nonetheless, the Houthi faction responded by reiterating its steadfast support for Gaza.
They have resumed attacks on Israeli positions and US military vessels in the Red Sea, especially after Israel concluded a ceasefire with Hamas that began in January and resumed military actions in Gaza.
The upcoming project requires governmental endorsements and will be financed through the SCA's investment budget, ensuring no added strain on the national budget, as stated.
Rabie expressed that this could enhance the canal's competitiveness and enable it to accommodate larger vessels.
