The Clap
The Suez Canal’s revenues decreased by 40% since the beginning of the year.
What
The recent escalations in the Red Sea directly impacted the Suez Canal revenues, as 8 out of the biggest 10 shipping companies shifted their transportation route from the Canal to the Cape of Good Hope. This translated to a 30% decrease in ship movement in the canal in the first 11 days of the year, according to the head of the Suez Canal authority to “Kol Yom”.
So What
The Suez Canal is a major source of foreign currency. The drop in revenues could make the foreign currency shortage more severe and affect the country’s income.
Now What
The US and the UK advised ships against movement in the Red Sea after launching their airstrikes on a military group in Yemmen. This could reduce ship movement in the
canal even more.
