Suez Canal Revenues Drop 46% in January

A ship carrying containers passes through the Suez Canal. (Reuters)
A ship carrying containers passes through the Suez Canal. (Reuters)
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Suez Canal Revenues Drop 46% in January

A ship carrying containers passes through the Suez Canal. (Reuters)
A ship carrying containers passes through the Suez Canal. (Reuters)

Egypt’s Suez Canal Authority reported that revenues for January 2024 witnessed a massive decrease of 46% compared to the same period in 2023, from $804 million to $428 million.

The Authority’s Chairman, Osama Rabie, said in televised statements that 1,362 ships crossed the Canal in January of 2024, compared to 2,155 vessels in January 2023, a 36% drop.

Rabie noted that this is the first time the Suez Canal has gone through a crisis, adding that the Authority held many meetings with shipping bodies and companies to reach a solution.

He said that the meetings witnessed consensus that the Suez Canal route is the best, shortest, and safest maritime course and that the Cape of Good Hope is an unsustainable navigation route.

Rabie pointed out that ships are being delayed between 12 and 15 days, depending on the speed of the vessel and weather conditions, as a result of taking routes alternative to the Red Sea and the Suez Canal, thus disrupting global supply chains.

The official said the Suez Canal problem affects the whole world, not just Egypt.

He expected traffic through the Canal to increase rapidly after the current crisis is over to compensate for supply chains.

The International Monetary Fund (IMF) recently warned of escalating tension in the Red Sea region and its repercussions on trade and shipping costs.

The Fund said in a report that included an update on the regional economic prospects in the Middle East and North Africa (MENA) that after ships were subjected to drone attacks in the Red Sea and the Gulf of Aden, many major shipping companies transferred their shipments to alternative shipping routes, with potential implications for global supply chains and commodity trading, and higher insurance costs.

It warned that shipping costs could rise further if tension continues after some shipping companies shifted larger portions of their trade to longer alternative routes, which would increase fuel and operating costs.



Indonesia, Singapore Sign Deals on Power Trade, Carbon Capture 

Indonesian Energy and Mineral Resources Minister Bahlil Lahadalia speaks to the media during a press conference at the presidential palace in Jakarta, Indonesia, Tuesday, June 10, 2025. (AP) 
Indonesian Energy and Mineral Resources Minister Bahlil Lahadalia speaks to the media during a press conference at the presidential palace in Jakarta, Indonesia, Tuesday, June 10, 2025. (AP) 
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Indonesia, Singapore Sign Deals on Power Trade, Carbon Capture 

Indonesian Energy and Mineral Resources Minister Bahlil Lahadalia speaks to the media during a press conference at the presidential palace in Jakarta, Indonesia, Tuesday, June 10, 2025. (AP) 
Indonesian Energy and Mineral Resources Minister Bahlil Lahadalia speaks to the media during a press conference at the presidential palace in Jakarta, Indonesia, Tuesday, June 10, 2025. (AP) 

Indonesia and Singapore signed initial deals on Friday to develop cross-border trade in low carbon electricity and collaborate on carbon capture and storage, ministers from both countries said in Jakarta.

The electricity deal reaffirmed an earlier agreement to export solar power from Indonesia to Singapore, with a group of companies planning to build plants and grid infrastructure to generate and transmit the power.

The memorandum of understanding signed by the two countries says they will aim to draw up policies, regulatory frameworks and business arrangements that will enable Indonesian power to be delivered to Singapore.

Indonesia expects to export 3.4 gigawatts of low-carbon power by 2035, according to a presentation slide shown by Indonesia's energy minister Bahlil Lahadalia.

In another MoU, the two countries said they would look into drawing up a legally binding agreement for carbon capture and storage that would allow cross-border projects to go ahead.

If successful, it will be the first such project in Asia, said Singapore government minister Tan See Leng.

Energy firms BP, ExxonMobil, and Indonesia's state company Pertamina are already developing CCS projects in Indonesia.

With its depleted oil and gas reservoirs and saline aquifers capable of storing hundreds of gigatons of CO2, Indonesia has allowed CCS operators to set aside 30% of their storage capacity for carbon captured in other countries.

The two countries also signed a deal for the development of sustainable industrial zones on several Indonesian islands near Singapore, including Batam, Bintan and Karimun.

Bahlil said the deals could bring in more than $10 billion of investment from the manufacturing of solar panels, the development of CCS projects and potential investment in industrial estates.