Suez Canal's trade plunge 50% YoY in 2 months: IMF

PHOTO

Trade volume through the Suez Canal plummeted by 50% year on year (YoY) in the first two months of 2024, as per data from the International Monetary Fund’s (IMF) PortWatch.

On the other hand, trade transiting around the Cape of Good Hope surged by an estimated 74% YoY, according to the data.

Attacks on vessels in the Red Sea region have led to a sharp decline in traffic through the Suez Canal. This route typically handles around 15% of global maritime trade.

Many shipping companies have rerouted their vessels around the Cape of Good Hope, lengthening delivery times by an average of over 10 days. This shift has particularly impacted companies with limited inventories.

Chairman of the Suez Canal Authority (SCA) Osama Rabie previously expected that the Suez Canal revenues to decline to $5 billion in 2024 if disruptions at the Red Sea persisted until the end of the year.