Suez Canal revival gathers pace as Hormuz crisis reroutes ships
In July, vessels transiting the waterway rise 27% year on year to 1,340
In July, the number of vessels transiting the Suez Canal rose by 27% compared to the previous year, reaching a total of 1,340 ships, according to data from the state statistics agency Capmas. This surge in traffic led to a 42% increase in revenue for the canal, amounting to US$505 million, marking the highest monthly level since December 2023.
The rise in canal income is attributed to more ships rerouting their routes due to the effective closure of the Strait of Hormuz and threats from Houthi rebels in the Red Sea. Oil tankers, accounting for 526 of the vessels, witnessed a 5% increase from the previous month. Despite the recent growth, the canal's traffic volumes and revenue are still significantly lower than the pre-Gaza war levels.
In 2023, the Suez Canal brought in a record US$10.2 billion, with 2,300 ships crossing during April of that year. Experts predict that the resurgence in canal traffic will continue in the coming months as Asia-bound oil exports and some European shippers resume Red Sea services.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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