Egypt and Saudi Arabia seek secure Red Sea navigation as Suez losses mount

Egyptian President el-Sisi and Saudi Crown Prince MBS met in Cairo to back secure Red Sea navigation, per the Egyptian presidency. The meeting comes as Houthi disruptions have cost Egypt an estimated €6.4-8.2 billion ($7-9 billion) in Suez Canal revenues since 2023, per the Suez Canal Authority and President al-Sisi.

Bottom line — Suez Canal traffic remains 36% below normal despite a gradual recovery, per Lloyd's List Intelligence.

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• Egypt lost about 60% of Suez Canal revenues between 2023 and 2024, according to the Suez Canal Authority, while President al-Sisi put the total loss at €8.2-9.1 billion ($9-10 billion), per Ecofin Agency.
• The Saudi-backed Yemeni government has lost key coastal territories to Houthi rebels in recent days, including Mocha port, per Al Jazeera.
• Despite Houthi assurances that maritime traffic would not be affected, Saudi-linked ships have been targeted in recent months, per Al Jazeera.
• Weekly transits through the Suez Canal hit levels not seen since early 2024, with 290 ships passing the northern chokepoint in the week to 30 August, per Lloyd's List Intelligence.
• Bab el-Mandeb traffic averaged 273 ships per week between 27 July and 23 August, down 15% from the pre-blockade average of 319, per Lloyd's List Intelligence.
• No Houthi attacks have been reported since 24 August, when a Bahri-owned VLCC was hit off Yanbu, per Lloyd's List Intelligence.
• The crisis has forced ships to reroute around the Cape of Good Hope, increasing fuel costs, insurance premiums and transit times, per Ecofin Agency.
• Escalating tensions in the Gulf have also disrupted traffic through the Strait of Hormuz, adding further uncertainty to global supply chains, per Ecofin Agency.

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