Key facts
- Suez Canal oil tanker transits increased 28% year-over-year in April.
- Total vessel traffic through the canal rose 14% in April.
- Suez Canal revenue reached $419 million in April, up 27% year-over-year.
- Increased traffic is linked to disruptions at the Strait of Hormuz.
- Oil tankers are undertaking more 'dark' transits through the Strait of Hormuz.
- Traffic and revenue remain below pre-Gaza war levels.
The Suez Canal experienced a significant surge in oil tanker traffic and revenue in April, a development linked to the ongoing disruption and effective closure of the Strait of Hormuz. This forced rerouting of energy trade through the Red Sea has provided an unexpected boost to Egypt's foreign exchange earnings.
A total of 529 oil tankers transited the canal in April, marking a 28% increase compared to the previous year. Overall vessel traffic also saw a 14% rise, with 1,182 ships of various types making the journey. Revenue generated from the waterway reached $419 million for the month, the highest figure recorded since early 2024 and a 27% increase year-over-year.
This unexpected uptick comes as the Strait of Hormuz, a critical chokepoint for global oil and LNG transit, has been largely shut down following escalating tensions related to the US-Israeli conflict with Iran. Major oil exporters like Saudi Arabia have implemented workarounds, including utilizing backup pipelines to transfer crude to Red Sea ports for onward shipment.
While many vessels have navigated south past Yemen and the Bab el-Mandeb strait, the data suggests a notable portion has rerouted north through Egypt's Suez Canal. Analysts note that the Suez Canal is emerging as a net beneficiary of the regional conflict, with potential for further revenue recovery.
However, despite the recent positive trend, both the total number of crossings and the revenue generated remain substantially below pre-war levels. Authorities estimate potential revenue losses of at least $9 billion due to shipping disruptions. The situation remains dynamic, with the potential for Houthis to resume or escalate attacks if geopolitical tensions rise, particularly after their recent declaration of a ban on Israeli shipping in the Red Sea.