This is one of the two problems that could lead Egypt into what the war planners call kinetic military action, the other being if Israel herds the Gazans toward the border with Egypt.
Egypt built this wall:
They really don't want any immigrants from Gaza.
Back to the canal. From Bloomberg, January 16:
- Government raised waterway transit fees to boost income
- Houthis have deterred shipping firms from using vital passage
Egypt pushed ahead with an increase in transit fees through the Suez Canal this week, as a need for foreign currency trumped a fall in maritime traffic due to Houthi attacks on shipping in the Red Sea.
Revenue for the North African nation from the vital waterway — the shortest route between Asia and Europe — has slumped as some ships avoid the canal to protect themselves from missile and drone assaults. But rather than delay the long-planned hike, Cairo is betting additional income from those still transiting will help the cash-strapped economy.
Traffic volumes through the Suez Canal were down 30% between Jan. 1 and Jan. 11 compared with a year earlier, according to canal authority head Osama Rabie, as the Iran-backed Houthis stepped up their attacks in response to Israel’s war against Hamas in Gaza, fueling concerns of a wider military conflict.
“Because of security concerns, commercial ships may prefer longer routes than entering a war zone,” Rabie told a talkshow on the MBC Masr TV channel late last week. “Even if I decreased tariffs, it won’t have an impact, because these are security fears.”
Egypt's Losing Millions of Dollars Daily as Ships Avoid the Suez Canal
Egypt, which increased the fees Monday, had also been working on expanding the waterway to bring in more revenue from what’s one of its prize assets. The Middle East’s most populous country is in talks with the International Monetary Fund over the possibility of at least doubling its current $3 billion rescue package....
....MUCH MORE
This is another of those possible Sunni-Shia flashpoints:
After U.S., Others, Write Strongly Worded Letter, Houthis Launch Explosive Sea-Drone
Egypt gets something like one third of government revenue from Suez canal tolls. At what point will they be forced to attack the Iran-backed Houthi and get a Sunni-Shia war going?
The Bloomberg article says 2023 revenues for the canal were $10.25 billion.
