Suez Canal Experiences Dearth of LNG Carriers

For over two months, no liquefied natural gas (LNG) carrier has traversed the Suez Canal, as revealed by recent findings from the United Nations Conference on Trade and Development (UNCTAD).

The most recent passage of an LNG vessel through the vital Egyptian channel occurred on January 16. Since then, an escalating security crisis in the Red Sea area has prompted a widespread diversion of gas carriers to navigate around the African continent.

In the realm of major commercial shipping categories, LNG carriers have distinctly avoided the Suez Canal in the past few months, a fact underscored by the accompanying UNCTAD chart.

According to the International Monetary Fund, the total volume of trade passing through the Suez Canal saw a drastic 50% drop year-on-year in the initial two months of 2024. Meanwhile, trade routes rerouting around the Cape of Good Hope experienced a significant 74% increase.

Last year, transit fees through the Suez Canal brought in $10.25 billion in revenue for Egypt. However, the Suez Canal Authority has projected that this year's earnings could plummet to approximately $5 billion.

Recent figures from Clarksons Research indicate a 72% decline in total vessel arrivals in the Gulf of Aden for all types of merchant ships compared to the numbers from the first half of December.