Short Article

05-12-2024 | 16:18 PM

Suez Canal & Its Economic Importance

The Suez Canal is one of the world's busiest and most important waterways, handling about 12% of global trade. 

Key Facts About the Suez Canal:

• This 193-kilometer-long artificial waterway connects the Mediterranean Sea to the Red Sea, offering the shortest maritime route between Europe and Asia.
• Opened in 1869, it is a sea-level waterway with no locks, making it easier and faster for ships to pass through.
• This characteristic allows for a smoother, more efficient passage of vessels, thus supporting a high volume of maritime traffic.

Economic Importance of the Suez Canal

• Reduced Transit Time: The Canal reduces the maritime distance between Europe and Asia by approximately 7,000 kilometres.
• Important for Global Trade: Around 12% of world trade passes through the Suez Canal, including about 7% of global oil shipments and 30% of daily container traffic.
• Economic Lifeline for Egypt: The Suez Canal is a major source of revenue for Egypt.
• Global Supply Chain Impacts: The canal’s smooth operation is essential for keeping the global supply chain moving. Any disruptions here have widespread effects.
• The blockage of the Suez Canal in 2021 caused a major loss to international trade. The blockage cost an estimated US$90 million in the first week.