In 2024, the Suez Canal experienced a dramatic 60 percent revenue decline, resulting in a $7 billion loss. This downturn is primarily attributed to Houthi attacks on Red Sea shipping, prompting rerouting around the Cape of Good Hope and disrupting global trade. These attacks, in response to the Israeli-Gaza conflict, have severely impacted Egypt’s already fragile economy, which is grappling with inflation, currency devaluation, and political instability. The economic crisis further exacerbates Egypt’s existing political tensions and human rights concerns.
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As someone who works in logistics, I can confirm firsthand that the undeterred Houthi attacks are not only making my job harder but also causing significant disruptions in international trade. The decline of container shipping through the Red Sea by 90% is causing chaos in the industry. Space and equipment are harder to come by, and the costs have skyrocketed. A normal 40ft container that used to cost around $2500 now ranges from $7500 to $10,000 for import from China. It’s a challenging situation to navigate, to say the least.
The toll on global warming is another concerning aspect. With the fuel consumption of container ships, the repercussions on the environment are inevitable.… Continue reading
John Q. Hosedrinker