Factbox-How are the Red Sea attacks impacting shipping in the Suez Canal?
investing.comBy Ahmad Ghaddar
LONDON (Reuters) — Attacks launched by Yemen's Houthi group on commercial ships at the southern end of the Red Sea have prompted several shipping companies to divert vessels, avoiding a route that would take them through Egypt's Suez Canal in the north and its link to the Mediterranean Sea.
The Iran-aligned group says the aim of the attacks is to support the Palestinians as Israel and Hamas wage war.
The re-routing adds cost and time to vessel journeys. Oil prices and war risk insurance premiums have spiked as a result.
WHAT IS THE SUEZ CANAL?
* The 192-km (120-mile) Suez Canal is the quickest sea route between Asia and Europe.
* The canal is one of seven geographic choke points that are critically important to the world oil trade and are also susceptible to blockages or pirate attacks.
* About 9.2 million barrels per day of oil flowed through the canal in the first half of 2023, representing about 9% of global demand, the U.S. Energy Information Administration said, quoting Vortexa data.
* Around 4% of global LNG imports estimated at 391 million metric tons in 2023 so far passed through the canal, consultancy Energy Aspects said.
* Revenue from tolls paid by shipowners is an important source of income to the Egyptian economy, and hit a record $9.4 billion in the year to June 30.
* The canal can accommodate over 60% of the total world fleet of tankers when fully loaded, and over 90% of bulk carriers. It can also accommodate all container carriers, car carriers and general cargo ships.
* A ship carrying Saudi crude from the Mideast Gulf can make it to Rotterdam, for example, in 6,436 nautical miles if it traverses the canal. Going around Africa increases the journey to 11,169 nautical miles, adding time
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