The cost of transporting goods through the Suez Canal has increased nine times
The cost of transporting one container on ships bound for the Red Sea ports has increased nine times. Osama Rabia, the head of the Suez Canal Administration, informed about this.
"Freight rates for ships going to Red Sea ports have risen to $6,800 per container, compared to $750 before the crisis," Rabia said.
He also pointed to the increase in the cost of bunker fuel and ship insurance. However, according to him, due to various conflicts in the region, the volume of sea cargo transportation through the Suez Canal has decreased recently, and through the Cape of Good Hope, it has increased.
A number of shipping companies have decided to stop shipping through the Red Sea due to the actions of the Houthis , who control most of Yemen's Red Sea coast.
The Houthis have previously warned of their intention to attack any ship associated with Israel, calling on other countries to withdraw their crews from them and not approach them at sea.
Last year, Egypt's income from the use of the Suez Canal exceeded 10 billion dollars. Financial income from the canal is one of the main sources of income for the Egyptian budget and is an important source of filling the state treasury with dollars. In order to ensure the flow of cargo and increase the competitiveness of the Suez Canal, the Egyptian government is considering a project to expand the canal and increase the volume of ships passing through it, Osama Rabia said.
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