Azernews.Az

Akbar Novruz

Read more

Egypt’s Suez Canal has recorded a significant increase in maritime traffic and revenues in April, driven by shifting global shipping routes amid heightened geopolitical tensions in the Middle East, AzerNEWS reports.

According to Egypt’s Central Agency for Public Mobilization and Statistics (CAPMAS), 529 oil tankers transited the Suez Canal in April, marking a 28% increase compared to the same period last year. Overall, 1,182 vessels of various types used the canal during the month, up 14% year-on-year.

The rise in transits has contributed to the highest canal revenues since early 2024, with water transport income reaching $419 million in April — a 27% increase compared to the same period last year.

Analysts attribute the surge to disruptions in alternative maritime routes, particularly the Strait of Hormuz, which has been severely affected since February 28 amid escalating regional tensions involving Iran. The Strait, previously responsible for roughly one-fifth of global oil and LNG flows, has seen major restrictions, prompting shipping companies and energy exporters to seek alternative routes.

At the same time, ongoing instability in the Red Sea and attacks on commercial shipping by Yemen’s Houthi movement have continued to reshape global logistics patterns. Although these attacks had previously reduced Suez Canal traffic for more than two years, recent geopolitical developments have reversed part of that decline.

Saudi Arabia and other Gulf countries have adjusted export strategies by utilizing alternative pipelines and Red Sea ports, including Yanbu, while some vessels have opted for longer but perceived safer routes bypassing high-risk maritime corridors.

Despite the recent recovery, Suez Canal activity remains below pre-conflict levels. In April 2023, approximately 2,300 ships transited the canal, highlighting the scale of the previous decline.

Egyptian officials estimate that the canal has lost around $9 billion in revenue due to disruptions linked to regional security tensions. However, economists suggest that the recent rebound could support Egypt’s foreign currency inflows alongside tourism and remittances, potentially easing pressure on the country’s current account balance.

Experts note that future revenue growth will depend heavily on the evolution of geopolitical risks in the Red Sea and broader Middle East, particularly any escalation or stabilization following recent conflicts and ceasefire developments.