Maersk raises rates as Red Sea crisis costs Egypt $800M per month
Yemen’s Houthi rebels have resumed attacks on ships in the Red Sea and the United States is escalating its military campaign against the Iran-backed group.
The escalating conflict in the Red Sea between the Trump administration and Yemen’s Houthis could spell further trouble for Egypt’s economy after signs of recovery last year. Cairo says it is losing hundreds of millions of dollars per month in Suez Canal revenue since the Houthis resumed attacks on ships in the waterway and US strikes against the group began. Meanwhile, Danish shipping giant Maersk has introduced surcharges over the disruptions.
Maersk said earlier this month that “some surcharges will increase temporarily” for various routes in the Middle East, South Asia and the Americas, citing the situation in the Red Sea. The surcharges will remain in effect through the end of March, according to a Wednesday update.
Egyptian President Abdel Fattah al-Sisi told members of the armed forces at a dinner on Monday that Egypt is losing about $800 million in monthly Suez Canal revenue.
“The country is incurring monthly losses of approximately $800 million in Suez Canal revenues, attributed to the current regional developments,” read a statement from the Egyptian presidency.
