The Red Sea crisis and the mounting geopolitical tensions in the Middle East are forcing vessels into longer and more costly journeys around Africa. If the conflict in Gaza drags on, the trade disruption in the Red Sea could surge inflation. Houthi attacks on Red Sea shipping are becoming a big problem especially for Egypt. With many vessels now avoiding Red Sea routes and Egypt’s Suez Canal, Egypt’s government has seen considerable revenue disappear. While in fiscal year 2022-23, the Suez Canal brought Egypt $9.4 billion in transit fees, the escalating crisis means that the income is now down 40% compared to last year, according to Osama Rabie, chairman of the Suez Canal Authority.

Source: The North Africa Journal January 30, 2024 11:04 UTC