CAIRO: Traffic through the Suez Canal will not be affected by ongoing strikes in the area and around the country, an official at the authority said.
“Traffic through the canal will not be affected; the strikes are people from the city working in Suez Canal companies and they have nothing to do with the traffic in the canal,” according to a spokesperson speaking on behalf of Mohamed Helmy Mottier, affiliated companies director at the Suez Canal Authority.
There have been strikes in some of the seven companies owned by the SCA in Ismailia and Suez, he added. Reports put the number of protesters from hundreds to thousands.
The spokesman said that the workers are protesting against poor wages and unfavorable working conditions, demanding that their salaries and benefits match the standards of those working for the Suez Canal Authority.
“Their demands can only be met if the agency’s laws are changed allowing them to have the same salaries and benefits as those at the authority because these companies are operating under laws meant for businesses in the public sector,” the spokesman added.
Suez Canal revenues decreased by 1.6 percent in January to reach $416.6 million compared to $423.4 million the previous month, Reuters reported. Suez Canal revenues grew year on year by 8.6 percent in January, recording the same annual growth as in December 2010.
Suez Canal revenues increased 2.6 percent in December from the previous month after decreasing by 3.4 percent in November 2010.
Beltone Financial said in a note that they do not believe that Suez Canal revenues in January were affected particularly because of the political events that began on the 25th.
“Suez Canal revenues grew y-o-y by 8 percent in January 2011, which is still relatively high when compared to other months during 2010,” the statement said.
A release of traffic statistics by the SCA for January compared to the previous year shows a 4.7 percent increase in the number of transits with 67 vessels passing through the canal.
The SCA also reported the net tonnage passing through as 9.1 million tons, a 13.6 percent increase from the previous year.
Beltone pointed out that Suez Canal receipts have sometimes fallen by much higher rates than the 1.6 percent recorded in January 2011; for example, receipts had fallen month on month by 6.4 percent and 3.4 percent in September and November 2010, respectively.
“Going forward, we expect to see growth patterns resume normally. However, we remain vigilant on Suez Canal employee strikes, which, if they become a recurrent activity, could have an influence on international perception, leading to shipping companies considering different routes,” Beltone said.
“However, we reiterate that this possibility remains farfetched as alternative routes are much more costly.”
