{"id":6154,"date":"2024-01-14T09:35:46","date_gmt":"2024-01-14T16:35:46","guid":{"rendered":"https:\/\/jasonsblog.ddns.net\/?p=6154"},"modified":"2024-04-19T10:40:48","modified_gmt":"2024-04-19T17:40:48","slug":"egypts-suez-canal-revenue-stream-dries-up-decreasing-by-40-due-to-houthi-attacks","status":"publish","type":"post","link":"https:\/\/jasonsblog.ddns.net\/index.php\/2024\/01\/14\/egypts-suez-canal-revenue-stream-dries-up-decreasing-by-40-due-to-houthi-attacks\/","title":{"rendered":"Egypt\u2019s Suez Canal Revenue Stream Dries Up, Decreasing by 40% due to Houthi Attacks"},"content":{"rendered":"\n

This is very interesting background on how the Houthi shipping attacks are putting pressure on Egypt with the theory that it’s Iran working with the U.S.<\/a> on behalf of Israel so they will open their boarder with Gaza and allow the Palestinians to be pushed out of Gaza. This would allow Israel and the OCGFC megacorps to profit highly off the gas reserves off Gaza worth billions<\/a>. And there were former Israeli soldiers that were claiming Israel permitted the Hamas attack as there was no way they didn’t see it coming not to mention Egypt and other intelligence sources warning them Hamas was up to something. <\/p>\n\n\n\n

https:\/\/legalinsurrection.com\/2024\/01\/egypts-suez-canal-revenue-stream-dries-up-decreasing-by-40-due-to-houthi-attacks\/<\/a><\/p>\n\n\n

<\/div><\/div><\/div>\n\n\n

By Leslie Eastman<\/p>\n\n\n\n

The conflict is making Egypt\u2019s bleak economic situation even worse.<\/p>\n\n\n\n

\"\"\/<\/figure>\n\n\n\n

Egypt is be the \u201cLand of the Nile\u201d because of the significance of the African river.<\/p>\n\n\n\n

However, in terms of waterways its Suez Canal, which is an critical link between the Mediterranean and the Indian Ocean, is a very close second in importance. I recently noted that Egypt would be significantly impacted if the piracy being conducted by the Houthis continued.<\/p>\n\n\n\n

I was right . . . again. The numbers are in, and Egypt\u2019s revenue stream from the canal is drying up<\/a>.<\/p>\n\n\n\n

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Dollar revenues from Egypt\u2019s Suez Canal are down 40% from the beginning of the year compared to 2023, canal authority head Osama Rabie said on Thursday, after attacks on ships by Yemen\u2019s Houthis caused major shippers to divert away from the route.<\/p>\n\n\n\n

Ship traffic was down 30% in the period between Jan. 1 and Jan. 11 compared to a year prior, Rabie said, speaking on a late night talk show.<\/p>\n\n\n\n

The number of vessels to pass through the Suez Canal dropped to 544 so far this year, from 777 in the equivalent period of 2023, he said.<\/p>\n\n\n\n

The Suez Canal is a key source of scarce foreign currency for Egypt, and authorities have been trying hard to boost revenues in recent years, including through an expansion of the canal in 2015. A further expansion is under way.<\/p>\n<\/blockquote>\n\n\n\n

The conflict is making Egypt\u2019s bleak economic situation<\/a> even worse.<\/p>\n\n\n\n

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Suez Canal revenues are especially vital for Egypt amid the economic crisis during which the local currency has lost half its value since March 2022 while inflation tops 35 percent.<\/p>\n\n\n\n

Egypt\u2019s economy also relies heavily on tourism and on remittances from Egyptian workers abroad, which fell almost 30 percent in July-September 2023 on year, according to the central bank.<\/p>\n\n\n\n

Amid the downturn, the Arab world\u2019s most populous country has relied heavily on Suez Canal income both for its military and for social welfare spending.<\/p>\n\n\n\n

At least two-thirds of the Egyptian population live on or below the poverty line.<\/p>\n\n\n\n

\u201cCanal revenues help keep the lid on the social pressure cooker,\u201d said Tourret. \u201cThey go directly to the state, which reinvests them in the military and social welfare.\u201d<\/p>\n\n\n\n

The recent decline in shipping traffic, he said, had caused \u201ca real shortfall. One month could be all right, but two months will be cause for concern.\u201d<\/p>\n<\/blockquote>\n\n\n\n

It\u2019s not surprising that Egypt\u2019s political leadership recently met with officials from a Danish shipping group<\/a>.<\/p>\n\n\n\n

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Egypt\u2019s Prime Minister Mostafa Madbouly discussed developments in the Red Sea with officials from shipping group Maersk in a video conference and ways to enhance cooperation, a statement from the Egyptian cabinet said on Wednesday.<\/p>\n\n\n\n

Madbouly stressed the centrality of the security and safety of maritime navigation in the Red Sea to Egypt\u2019s national security in light of its close connection to the Suez Canal, which is used by roughly one-third of global container ship cargo, the statement added.<\/p>\n\n\n\n

\u2026The meeting touched on the threat the Houthis pose to the security of maritime navigation in the Red Sea and Maersk\u2019s (MAERSKb.CO) aspirations to resume its sea voyages there, the statement said.<\/p>\n<\/blockquote>\n\n\n\n

In the wake of the U.S. and UK striking Houthi militant targets across Yemen, there are concerns countries in the Middle East will get engaged and expand the conflict zone. If the blockage of the Suez Canal continues, it is almost certain Egypt will begin to act more forcefully than a video conference meeting with shipping officials.<\/p>\n","protected":false},"excerpt":{"rendered":"

This is very interesting background on how the Houthi shipping attacks are putting pressure on Egypt with the theory that it’s Iran working with the U.S. on behalf of Israel so they will open their boarder with Gaza and allow the Palestinians to be pushed out of Gaza. This would allow Israel and the OCGFC […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-6154","post","type-post","status-publish","format-standard","hentry","category-world"],"blocksy_meta":[],"featured_image_src":null,"author_info":{"display_name":"Jason","author_link":"https:\/\/jasonsblog.ddns.net\/index.php\/author\/jturning\/"},"_links":{"self":[{"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/posts\/6154","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/comments?post=6154"}],"version-history":[{"count":2,"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/posts\/6154\/revisions"}],"predecessor-version":[{"id":7095,"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/posts\/6154\/revisions\/7095"}],"wp:attachment":[{"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/media?parent=6154"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/categories?post=6154"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/tags?post=6154"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}