Suez Canal revenue rises 42 percent amid Red Sea security threats

Suez Canal revenues rose 42 percent in July compared to the previous year, reaching approximately $505 million (435 million euros). This increase follows a rise in vessel traffic, with 1,340 ships transiting the waterway in July, a 27 percent increase year-on-year.

The surge in activity is driven by maritime security threats in the southern Red Sea and the Bab el-Mandeb strait, as well as the effective closure of the Strait of Hormuz. To avoid Houthi rebel threats and regional instability, more oil tankers are utilizing the Egyptian canal. Specifically, the number of oil tankers rose to 526 in July from 485 in June.

Saudi Arabia has adapted its export strategies in response to these risks. Rather than relying solely on Red Sea ports like Yanbu, the kingdom is rerouting oil shipments further north or utilizing a combination of maritime and land transport, such as the SUMED pipeline, to bypass dangerous chokepoints.

Despite this recovery, Suez Canal Authority Chairman Osama Rabie noted that traffic and revenue remain below the record levels seen in 2023. However, the authority expects full-year revenue to reach between $5.8 billion and $6 billion, up from $4.1 billion in 2025.