Suez Canal revenue and traffic dropped almost 25 per cent in February as the world economic crisis continued to bite, a Canal Authority official said on Monday. Canal revenue fell to US$302 million (S$623 million) from US$408 million in February 2008 and the number of boats dropped to 868 from 1,272, the official said. The volume of trade passing through the vital shipping route also took a hit, dropping to 53 million tonnes in February from 73 million tonnes in the same period last year.
The Canal Authority decided at the start of the year not to increase tariffs due to uncertainty in the shipping industry in the light of the piracy problem in the Gulf of Aden and the worldwide credit crunch.
Arms manufacturers in particular have rerouted their shipping round the Cape of Good Hope in recent months to avoid pirates preying on vessels en route between the Suez Canal and the Indian Ocean.
The canal is Egypt's third-largest source of revenue after tourism and remittances from expatriate workers.
The government last year raised more than five billion dollars from ships passing through the canal.
The Canal Authority decided at the start of the year not to increase tariffs due to uncertainty in the shipping industry in the light of the piracy problem in the Gulf of Aden and the worldwide credit crunch.
Arms manufacturers in particular have rerouted their shipping round the Cape of Good Hope in recent months to avoid pirates preying on vessels en route between the Suez Canal and the Indian Ocean.
The canal is Egypt's third-largest source of revenue after tourism and remittances from expatriate workers.
The government last year raised more than five billion dollars from ships passing through the canal.