Suez Canal slowdown sees activity fall 52% in FY24/25 amid geopolitical strains and global uncertainty

Cairo – October 1 ,2025: The Suez Canal recorded a marked slowdown in activity during the 2024/2025 fiscal year, according to a report by the Ministry of Planning, Economic Development, and International Cooperation.

The report revealed that overall canal activity fell by 52 percent year-over-year. In the final quarter of the fiscal year alone, activity slipped by 5.5 percent when compared to the same period the year before. This quarterly decline was further compounded by a base-year effect, as Q4 of the previous fiscal year had already suffered a steep contraction of 68.2 percent.

The Ministry pointed to a volatile global climate and ongoing geopolitical instability in the region as primary factors contributing to the downturn.

The Ministry's findings highlight a decrease in both the number of vessels and the volume of cargo passing through the canal. In response, the Suez Canal Authority (SCA) has implemented a range of incentive programs, including discounted transit fees, to help offset the impact on traffic and revenue.

President Abdel-Fattah al-Sisi acknowledged the ongoing financial strain in a speech on Friday, stating that Suez Canal revenues have plunged by roughly $9 billion over the past two years. The disruption has been largely attributed to instability in the Red Sea and surrounding regions, which has deterred shipping companies and affected trade routes.

Despite the broader downturn, there have been signs of recovery in 2025.

In March, monthly revenues climbed to $335.6 million, marking a 29 percent increase from January, with net tonnage rising by 7.1 percent. However, the canal’s first-quarter revenues for 2025 still reflected a 6 percent year-on-year decline. Container traffic at the Suez Canal Container Terminal also fell by 3.6 percent in the first half of the year.

Figures released earlier this year by the SCA showed that the canal brought in $4 billion in revenue in 2024, a steep drop from the record $10.3 billion achieved in 2023.

Speaking at a press roundtable in mid-September, Prime Minister Moustafa Madbouly emphasized that while revenues are showing some signs of stabilization, they remain well below historical norms. He noted that a full recovery is unlikely without an improvement in regional security conditions.