Chairman of the Suez Canal Authority (SCA) Osama Rabie (R) during a meeting with Commander of the US Central Command Michael Corella, in the SCA’s headquarters in Ismailia on Thursday, 18 July 2024 (Photo: The SCA)
According to a SCA statement, Rabie said 20,148 ships carrying a net of one billion tons transited the canal during FY2023/2024, which ended on 30 June, down from 25,911 ships carrying a net of 1.5 billion tons in FY 2022/2023.
The Red Sea security challenges have prompted many ship owners and operators to take alternative routes instead of the canal, Rabia told Michael Corella, commander of the United States Central Command, in a meeting in the SCA headquarters in Ismailia.
Tensions in the Red Sea have escalated following the Houthis' recurring attacks on ships linked to Israel, the US, and the UK near the strategic Bab El-Mandeb Strait.
The group, which controls much of Yemen but is not recognized internationally, says the attacks were meant to pressure Israel to end its deadly war on the Gaza Strip.
The attacks have led several shipping companies to divert their ships from the Suez Canal, where 12 percent of global trade used to cross, to the much-longer Cape of Good Hope.
The SCA chairman stated that the Red Sea tensions have also impacted the broader maritime transport market, global trade movements, and supply chains.
Furthermore, Rabie said this crisis has "proven there is no real alternative to the Suez Canal, as taking alternative routes has led to an increase in trip duration and operational costs."
He also highlighted the harmful environmental impacts of these alternative routes, including higher carbon emissions, port congestion, and delayed goods deliveries.
According to the statement, Rabie asserted that the canal will introduce a package of new navigation services to support its customers and reduce the impact of the current conditions.
Corella voiced his appreciation for efforts exerted by the SCA in managing crises and dealing with the repercussions of these Red Sea security challenges.
US Ambassador in Cairo Herro Mustafa Garg, who also attended the meeting, stressed the necessity of restoring stability in the region to ensure the sustainability of global supply chains and trade movements.
The man-made canal is one of Egypt’s major sources of hard currency.
This canal – which connects the Mediterranean and the Red seas – is the shortest maritime route between Asia and Europe and the fastest crossing from the Atlantic Ocean to the Indian Ocean.
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