Shipping traffic through Suez Canal down 20% due to Middle East tensions

Shipping traffic through the Suez Canal fell 20 per cent between December 24 and January 2 compared to a year earlier, according to the PortWatch platform, after shipping companies began re-routing vessels in response to attacks by Yemen’s Houthis.

Red Sea tensions hit shipping route

From December 15, when Maersk became the first shipper to announce diversions, until January 2, the most recent date for which International Monetary Fund’s PortWatch has data, the number of tankers and cargo ships passing through the crucial shipping lane fell by 10 per cent.

But seven-day averages only began dipping on December 24, as the numbers of shippers foregoing the crucial time- and fuel-saving route around Africa swelled.

Other major companies to have announced diversion of ships following missile and drone attacks by the Iran-aligned Houthis included Hapag-Lloyd and MSC.

Suez Canal traffic suffers

The Suez Canal is an important source of dollar revenues for cash-strapped Egypt, but canal authorities have not commented on any loss in revenue.

The Houthis have launched attacks on more than 20 ships since November 19, saying they were targeting vessels that had Israeli links or were sailing to Israel, in solidarity with Palestinians in Gaza.

However, many of the targeted vessels have had no Israeli connection and were not bound for Israeli ports.

The US and other countries last month formed a naval task force, Operation Prosperity Guardian, to protect civilian vessels. US warships have targeted Houthi vessels, and on Sunday sank some speed boats.

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