Windward AI, a maritime data and analytics company, has analyzed the impact of route deviations caused by ongoing attacks in the Red Sea and deceptive shipping practices. These attacks, carried out by Yemen’s Houthi group, have generated significant concern in Egypt, a country heavily dependent on the Red Sea for its naval routes. The direct consequence of the conflict in Gaza is predominantly being felt in Egypt, with a decline of 55% to 60% in traffic through the Suez Canal, which serves as the country’s economic lifeline. The International Monetary Fund (IMF) has also acknowledged the connection between the Gaza-Israel conflict and the decreasing traffic in the Suez Canal.

Windward AI identifies a decline in bulk carriers through the Suez Canal

In January, Windward AI observed a considerable decrease of 16% in the number of bulk carriers passing through the Suez Canal. This decline is likely a result of the ongoing attacks in the Red Sea and the conflict in Gaza, affecting the maritime routes and trade activities in the region. With Egypt heavily dependent on the revenue generated by the Suez Canal, any disruption to its traffic poses a significant threat to the country’s economy. The decline in bulk carriers highlights the economic impact of these events on Egypt and underscores the potential consequences if the situation does not stabilize.

“The impact of Houthi attacks on the Suez Canal threatens Egypt’s economic lifeline, disrupting trade routes and jeopardizing the country’s financial stability,” says a representative from Windward AI.

The Gaza-Israel conflict directly affects traffic through the Suez Canal

The Gaza-Israel conflict has had a direct impact on the traffic passing through the Suez Canal. The IMF’s Managing Director, Kristalina Georgieva, has acknowledged the connection between the conflict and the declining traffic in the canal. With tensions escalating in the region, maritime activities are being affected, causing a significant reduction in the movement of vessels through this vital waterway. Egypt’s economy heavily relies on the revenue generated by the Suez Canal, making a decline in traffic a cause for concern.

Summary:

• Red Sea attacks and deceptive shipping practices have prompted Windward AI to assess the impact of route deviations on maritime routes.
• Egypt, highly reliant on the Red Sea for its naval routes, is experiencing significant concern due to the attacks by Yemen’s Houthi group.
• The ongoing conflict in Gaza has resulted in a 55% to 60% decrease in traffic through the Suez Canal, which is vital for Egypt’s economy.
• Windward AI observed a 16% decline in the number of bulk carriers passing through the Suez Canal in January.
• The decline in traffic highlights the economic threats to Egypt and the potential consequences if the situation does not stabilize.
• The IMF’s Managing Director recognizes the direct impact of the Gaza-Israel conflict on the traffic through the Suez Canal.

“The impact of Houthi attacks on the Suez Canal threatens Egypt’s economic lifeline, disrupting trade routes and jeopardizing the country’s financial stability,” says a representative from Windward AI.