Cairo Intensifying Efforts to Restore Normal Traffic in Suez Canal
Egypt is intensifying its efforts to return traffic in its Suez Canal back to normal in wake of the hit revenues have taken because of the attacks by the Iran-backed Houthi militias in Yemen on international shipping in the Red Sea and Gulf of Aden.
Egyptian Foreign Minister Badr Abdelatty discussed Suez Canal traffic in a telephone call with his Dutch counterpart Caspar Veldkamp.
Veldkamp hoped the recent ceasefire agreement between Yemen and the US would positively impact navigation in the Red Sea and Suez Canal.
Abdelatty said Veldkamp stressed the Netherlands' readiness to encourage Dutch companies to resume navigation in the Red Sea and the Suez Canal, helping restore normal traffic levels.
Revenue from the Suez Canal, a key source of foreign currency for Egypt, plummeted to $880.9 million in the fourth quarter from $2.40 billion a year earlier, the victim of Houthi attacks, central bank figures showed in May.
Egypt's Suez Canal Authority chief, Osama Rabie, said in May the authority is considering offering discounts ranging from 12% to 15% on transit fees to help restore traffic in the strategic waterway.
Rabie met with representatives from shipping agencies who called for temporary incentives that would help offset increased insurance costs for vessels operating in the Red Sea, which they deemed a high-risk zone.
The meeting followed an Oman-mediated ceasefire between the US and the Houthis, under which the US agreed to stop bombing the Houthis in Yemen in return for the group agreeing to stop attacking US ships. The accord does not include Israel.
Abdelatty and Veldkamp also exchanged views on the latest developments in the Middle East region, particularly the catastrophic situation in Gaza.
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