The Suez Canal (Photo: AFP)

Chairman of the Suez Canal Authority Osama Rabie told Egyptian television channel ON TV that income from the international strategic waterway fell to 428 million USD last month, compared to 804 million USD in January 2023 as Houthi rebels' attacks on commercial vessels forced major shipping companies to re-route away from the Suez Canal.

1,362 ships passed through the Suez Canal last month, down 36% from January 2023.

The Suez Canal is the shortest sea route between Asia and Europe and a major facilitator of global trade. Jan Hoffmann, a trade expert at the United Nations Conference on Trade and Development, said that the Suez Canal handled 12-15% of global trade in 2023. Early data from 2024 shows that more than 300 container vessels, 20% of global container capacity, were diverting or planning alternatives to using the Suez Canal.

Houthi militants in Yemen began attacking commercial vessels in October after fighting between Israel and Hamas escalated in the Gaza Strip. Shipping companies are re-routing their vessels away from the Red Sea to avoid the attacks, opting instead for the longer and more expensive route around the Cape of Good Hope at the southern tip of Africa.