The Red Sea crisis, sparked by Houthi attacks on Israel-linked vessels in November 2023, did not result in a sustainable alternative shipping route to replace the Suez Canal, according to Suez Canal Authority Chairman Osama Rabie.
While there were disruptions in global shipping as vessels rerouted around Africa to avoid the region, Rabie highlighted that stability is gradually returning.
The Houthis, citing their support for Palestinians in Gaza, targeted vessels in the Red Sea, leading to increased shipping costs and forcing trade to take longer, more expensive detours. Egyptian President Abdel Fattah Al-Sisi revealed in December that the disruptions had cost Egypt around $7 billion in Suez Canal revenue for 2024, a decline of more than 60% from the previous year.
The attacks ceased after a ceasefire between Israel and Hamas was established on 19 January.
