Key facts
- Suez Canal revenues reached $505 million in July, a 42% increase year-over-year.
- The number of ships transiting the canal in July increased by 27% to 1,340.
- Oil tanker traffic through the canal rose to 526 in July.
- Houthi threats in the Red Sea and Bab el-Mandeb Strait are driving the rerouting of vessels.
- Saudi Arabia is utilizing the Suez Canal and SUMED pipeline for its crude oil exports.
The Suez Canal experienced a significant surge in traffic and revenue in July, with earnings jumping 42% year-over-year to $505 million. This increase is directly linked to heightened threats against shipping in the southern Red Sea and the Bab el-Mandeb Strait, prompting vessels to reroute through the Egyptian waterway.
The number of ships transiting the canal in July climbed 27% from the previous year to 1,340, with oil tankers alone increasing to 526 from 485 in June. These shifts are a consequence of the Iran-aligned Houthis in Yemen announcing a blockade on Saudi shipments in the southern Red Sea, leading to several attacks on tankers.
As a result, Saudi Arabia, which had already adjusted its export routes due to Strait of Hormuz tensions, is now further detouring tankers north to the Suez Canal and utilizing the SUMED pipeline. Some oil tankers carrying Saudi crude to Asia are opting for the substantially longer route around Africa to bypass the Bab el-Mandeb Strait.