Suez Canal Revenues Jump 42% in July Amid Red Sea and Gulf Trade Shifts
Suez Canal revenues jumped 42% in July to $505 million as Saudi Arabia diverted oil exports and stranded ships paid to return north. Despite the rebound, earnings remain far below 2023 peaks.
Suez Canal Revenues Surge in July
Suez Canal revenues jumped by 42% in July compared to the same month last year, reaching $505 million, according to data from Egypt's official statistics agency CAPMAS published by Bloomberg. This represents the highest monthly figure recorded since December 2023. Along with tourism and remittances from expatriate workers, the canal remains one of the three primary sources of foreign currency for the Egyptian economy, which has suffered severe economic blows from Houthi attacks in the Red Sea.
Reasons Behind the Revenue Spike
The closure of the Strait of Hormuz, through which a fifth of global oil supplies previously passed, forced Saudi Arabia to find an alternative route. The kingdom is diverting part of its oil exports to an overland route ending in the Red Sea, from where tankers pass through the canal northward instead of risking the passage through the Strait of Hormuz. Additionally, the Houthi threat in the southern Red Sea generates supplementary income for Egypt. Ships that crossed the canal southward and became stranded due to the threat prefer to pay tolls once again to return northward through the canal rather than risk passing through the Bab el-Mandeb Strait. This is a point-in-time profit dependent on the number of stranded vessels. During July, 1,340 vessels crossed the canal, representing a 27% increase compared to the same period last year.
Outlook and Future Projections
«The trend may significantly ease Egypt's deficit, and recovery will continue thanks to the gradual return of European shipping companies to the canal route.»
Mohamed Abu Basha, head of macroeconomic research at investment bank EFG Hermes, noted that the trend could significantly ease Egypt's deficit. He estimates that the recovery will continue, aided by the gradual return of European shipping companies to the canal route. The Suez Canal Authority projects that revenues in 2026 will range between $5.8 billion and $6 billion, compared to $4.1 billion recorded in 2025. Despite the recovery, the figures remain dramatically lower than the peak recorded in 2023, when the canal generated annual revenues of $10.2 billion.
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