Suez Canal profits slump as Red Sea crisis bites

Revenue for the Suez Canal has been almost halved due to ongoing attacks on merchant ships in the Red Sea. According to a report in the Maritime Executive, profits for May fell to around US$337.8 million, compared to $648 last year.

The number of vessels passing through the canal during the month fell to 1,111, a drop of 1,285 on the previous year; while the amount of cargo dropped by 68.5 per cent, to around 44.9 million tonnes, down from 142.9mt in May 2023.

Many companies are avoiding the risk of travelling through the Suez Canal as Houthis continue to target ships at the southern end of the waterway.   

To increase business, the Suez Canal Authority (SCA) recently extended fee discounts some vessels on long-distance journeys. It introduced the fee reductions in January, cutting as much as 75 percent for product tankers and crude carriers travelling between the Americas and Asia.

The extension will be valid until end of the year, and covers 12 categories of ships including bulk carriers, containerships and LNG carriers.

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