Shipping volume through the Suez Canal fell by a staggering 70% year-over-year in the third quarter of 2024, according to the International Monetary Fund (IMF).

This sharp decline is attributed to ongoing Houthi attacks on vessels navigating the Red Sea, prompting many shipping lines to divert to safer routes, particularly around the Cape of Good Hope.

Data from the IMF’s PortWatch indicates that traffic around the Cape has surged by over 50% as ships seek to avoid the increasingly dangerous waters of the Red Sea.

The repercussions of these shifts are profoundly affecting Egypt's economy, with the Suez Canal Authority (SCA) reporting a 60% drop in revenues and a 49% decrease in the number of vessels traversing the canal since the start of the year.

Osama Rabie, Chairman of the SCA, commented on the situation earlier this month, stating that “the current situation and unprecedented challenges in the Red Sea region” have compelled shippers to explore alternative routes.

This strategic pivot comes as the canal, historically a vital artery for global trade, grapples with mounting security concerns.

Suez Canal revenues have plummeted from $9.4 billion in the FY2022/2023 to an estimated $7.2 billion in FY2023/2024.