Wednesday, October 22, 2025

Suez Canal Revenues Plummet Amid Red Sea Instability

Suez Canal revenues plummeted by 64.3% year-on-year in May, reaching only $337.8 million due to ongoing instability in the Red Sea, according to Egyptian media reports. The number of ships passing through the canal has also dropped significantly, with only 1,111 vessels traversing the waterway last month, a 54% decrease compared to May 2023.

The decline in maritime traffic is largely attributed to attacks by Yemen’s Ansar Allah group, also known as the Houthis, who have been targeting ships in the Red Sea since November in response to the conflict in Gaza. The impact of these attacks has been felt across the region, with Saudi Arabia reporting an 8% year-on-year decrease in maritime traffic and a 10% drop in handled containers.

In a recent incident, a Liberia-flagged bulker sustained severe damage after being struck by an unidentified object in the southern part of the Red Sea. The vessel is reportedly taking on water in its engine compartment. 

Despite hopes for a ceasefire in the Palestinian territory, companies are likely to remain cautious about resuming transits through the Red Sea, even if an agreement is reached in the Gaza Strip.

Advisory and broking company WTW has warned that attacks are highly likely to continue over the next six months, as the Houthis have sufficient stockpiles of weaponry, despite US airstrikes on their positions in Yemen. 

The ongoing instability in the region continues to have a significant impact on global shipping and the economies of countries relying on the Suez Canal for trade.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

Steadright Enters MOU To Acquire Historic Goundafa Polymetallic Mine In Morocco

Military Seizes Power in Madagascar After President Flees

Related News

Egypt Quietly Alters Ceasefire Proposal, Stalling Gaza Peace Talks

Egyptian intelligence officials quietly changed the terms of a ceasefire proposal that Israel had already...

Sunday, May 26, 2024, 01:21:00 PM

Operation Prosperity Guardian Isn’t Reassuring Major Merchants, Over 100 Container Ships Have Diverted Away from the Red Sea

In recent weeks, US warships stationed in the Red Sea have encountered an escalation in...

Friday, December 22, 2023, 06:56:00 AM

Crude Sent Soaring After Saudi Aramco Facility hit by Houthi Rebels Missile

Crude prices were sent higher on Friday, after reports emerged that Saudi Arabia’s Aramco oil...

Friday, March 25, 2022, 12:46:00 PM

US to Relist Houthis as Specially Designated Global Terrorists Following Red Sea Attacks

The Biden administration is set to reclassify Iranian-backed Houthi rebels in Yemen as specially designated...

Wednesday, January 17, 2024, 07:28:13 AM

Houthis Sink British Ship In The Red Sea, US Strikes Submarine Drone

Iran-backed Houthi militants attacked and significantly damaged the cargo ship Rubymar in the Bab el-Mandeb...

Tuesday, February 20, 2024, 10:14:56 AM