Despite Ever Given Grounding, Suez Canal Reports Record $5.84 Billion Annual Revenue.

3 mins read  Sealuminati TeamJuly 13, 2021

Notwithstanding the Ever Given grounding mishap in March that distorted a total of six days of transit, the Suez Canal Authority documented a substantial upsurge in the revenue structure over the past year in global trade. Improvements in global shipping hand in hand with the increase in the number of vessels transit through the Canal in the first half of 2021, bestowed to report monetary results for the year.

During the half a dozen months into 2021, the Suez Canal "recorded a remarkable increase in the number and tonnage of ships transiting the canal. The flexible marketing and pricing policies pursued by the authorities succeeded in maintaining the rates of ships crossing the canal, "said Lieutenant-General Osama Rabie (Head, SCA) interpreting the 2021 navigational statistics.

Comparing the first half of 2020 and 2021, the year with the grounding incident reported 9,763 i.e. 217 more ships from the previous year count of 9,546. However, many ships diverted from the Suez Canal pounding on the uncertainties, yet the canal showed an over 2% growth in vessel transits.

Ship owners also introduced new, bigger box ships that reflects in the reports of an increase in vessel size using the canal. A growth of 3.8% (22.4 million tons) was observed in the net tonnage crossing the canal throughout the 2021 first half. 610.1 million tons passed in total in 2021, whereas 2020 reported 587.7 million tons.

The authority head highlighted that the revenue growth of the Canal, despite the numerous challenges, tallied the highest annual earnings in the Canal's history. Revenues attained $5.84 billion mark, with a more than 2% growth from the 2019/20 fiscal year, which enumerated $5.72 billion as revenue. A revenue increase of 8.6% ($237 million) was encountered by the Canal in the first half of 2021 itself. The overall revenue gained in the six months was nearly $3 billion compared to the 2020 six-month revenue generation of $2.76 billion.

The head of the authority illustrated their adaptable policies as divulging in attracting 2,519 ships, exemplifying $620.1 million in earnings during the initial six months of 2021. The authorities offered incentives to catch hold of the ships to make them pass through the canal. LNG carriers transit boosted by a quarter margin to be particular in 2021, while a 10% increment was observed for box ships. 5% dry bulk vessels increased, and a 27.8% surge in car carrier volumes was also noted in 2021.