Ships hit by Houthi strikes offered repairs on Suez

Egypt’s Suez Canal Authority said shipping companies whose vessels were damaged by Houthi attacks in the Red Sea can use its shipyards for repairs.

On Monday, Admiral Osama Rabie, the authority’s chief, said its dry docks and workshops were ready for ships that may have been hit in the Bab Al Mandeb, a strait leading to the Red Sea.

The Red Sea and Suez Canal account for about 14 per cent of global maritime trade worth up to $1 trillion a year.

Prices for travel through the canal and security have risen since the Yemeni rebels began their missile launches.

A Maltese-registered dry bulk carrier Zografia, which was hit by a Houthi strike last Tuesday while entering the Red Sea, is under repair at Suez Shipyard, a company affiliated with the canal authority.

Work on the 190-metre vessel includes repairs to its hull and interior, Admiral Rabie said. While the Houthis say the strikes are aimed at punishing Israel for its military operation in the Gaza Strip, they threaten the Egyptian economy.

The country heavily relies on foreign currency paid by shippers using the Suez Canal.

Canal revenue hit a record of more than $9 billion last year, while Egypt’s 2023-2024 budget is $97.4 billion.

Transit fees increased significantly last year after several shipping companies halted their journeys through the Suez Canal, choosing instead to send vessels around the Cape of Good Hope, Africa’s southernmost point.

However, longer than average shipping times have increased risks of cargo spoiling.

Exporters have increased prices to address the risk to their bottom line, while additional fuel costs take a toll.

While a US-led military coalition counters Houthi attacks, US President Joe Biden said last week that he expected rebel strikes to continue.