SUEZ CANAL

SUEZ CANAL

Subject : International Relations

Context : Recently, the Suez Canal has been blocked after a large cargo ship ran a ground while passing through it, bringing traffic on the busy trade route to a halt.

Concept :

About Suez Canal

• It is a critical shipping artery that connects the Mediterranean and Red Seas through Egypt.
• It is a human-made waterway and as one of the world’s most heavily used shipping lanes, carrying over 12% of world trade by volume.
• It was built in 1869 to provide a major shortcut for ships moving between Europe and Asia.
• The 150-year-old canal was controlled by British and French interests in its initial years, but was nationalised in 1956 by Egypt.
• In 2015, Egypt announced plans to further expand the Suez Canal, aiming to reduce waiting times and double the number of ships that can use the canal daily by 2023.

Significance of Suez Canal

• The canal is a major source of income for Egypt’s economy, with the African country earning $5.61 billion in revenues from it in 2020.
• According to reports, nearly 50 ships pass through it every day, and it accounts for 12% of world trade.
• The majority of oil transported by sea passes through the Suez Canal, which is the fastest crossing from the Atlantic Ocean to the Indian Ocean, but demands hefty passage tolls.
• The journey between ports in the Gulf and London, for example, is roughly halved by going through the Suez as compared to the alternate route via the southern tip of Africa.