CAIRO — The Suez Canal Authority (SCA) announced that revenues from the vital waterway fell to approximately $4 billion in 2024, marking a dramatic 61% decline compared to the previous year. 

The sharp drop is attributed to escalating regional tensions and repeated attacks by Houthi militants on commercial vessels transiting the Red Sea.

According to SCA Chairman Osama Rabie, the canal’s earnings plunged from $10.2 billion in 2023 due to a significant reduction in maritime traffic. Only 13,200 ships passed through the canal in 2024, down from 26,400 vessels the previous year. Rabie described the losses as “unprecedented,” citing the impact of security threats and rerouted shipping lanes.

The Red Sea has become increasingly volatile since late 2023, when Houthi forces began targeting international cargo ships in response to regional conflicts. These attacks prompted major shipping companies to divert vessels around the Cape of Good Hope, bypassing the Suez Canal entirely and causing billions in lost revenue for Egypt.

President Abdel Fattah El-Sisi’s office confirmed that Egypt lost over $6.2 billion in canal income, falling short of its projected target of $10.6 billion for the year. The economic blow comes amid broader concerns about global trade disruptions and the safety of maritime corridors linking Europe and Asia.

Despite the downturn, officials remain cautiously optimistic about recovery in 2025, citing recent de-escalation efforts and improved navigation indicators. Rabie noted that October 2025 saw a 17% year-on-year increase in dollar-denominated revenues and a 16% rise in vessel traffic, signaling a potential rebound.

The Suez Canal remains a strategic artery for global commerce, and Egyptian authorities are working with international partners to bolster maritime security and restore confidence among shipping operators.