Egypt Grapples With Impact of Red Sea Hits on Suez Canal Revenue
- Government raised waterway transit fees to boost income
- Houthis have deterred shipping firms from using vital passage
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Egypt pushed ahead with an increase in transit fees through the Suez Canal this week, as a need for foreign currency trumped a fall in maritime traffic due to Houthi attacks on shipping in the Red Sea.
Revenue for the North African nation from the vital waterway — the shortest route between Asia and Europe — has slumped as some ships avoid the canal to protect themselves from missile and drone assaults. But rather than delay the long-planned hike, Cairo is betting additional income from those still transiting will help the cash-strapped economy.