Is the Suez Canal an important trade route?

The Suez canal is a critical maritime passage for global supply chains and among the world’s most significant trade chokepoints, alongside the Strait of Hormuz, the Malacca Strait and the Panama canal.

Why is the Suez Canal so strategically important?

​Importance of the Suez Canal The Suez Canal is considered to be the shortest link between the east and the west due to its unique geographic location; it is an important international navigation canal linking between the Mediterranean sea at Port said and the red sea at Suez .

Is the Suez Canal the most important waterway?

The Suez Canal is one of the most important waterways in the world. The canal is extensively used by modern ships , as it is the fastest crossing from the Atlantic Ocean to the Indian Ocean . Tolls paid by the vessels represent an important source of income for the Egyptian government.

What is the importance of the opening of the Suez Canal?

The Suez Canal is important because it is the shortest maritime route from Europe to Asia. Prior to its construction, ships headed toward Asia had to embark on an arduous journey around the Cape of Good Hope at the southern tip of Africa.

What is the significance of the Suez Canal in context to India’s locational advantage?

The Suez Canal is extremely important for the Indian economy because of its strategic location on the sea routes between the Red Sea and the Mediterranean. It is the only alternate sea trading route to the traditional Cape Route, which is two week’s longer worth of journey.

What are the benefits of the Suez Canal in India?

It has reduced the distance between India and Europe by about 7000 km. Earlier the sea route from Europe to India was via Cape of Good Hope, which is the Southern tip of Africa. This route was very long. Thus, the Suez Canal has reduced the distance between India and Europe.

Why is the Suez Canal so important to the world?

The importance of the Suez Canal to global trade could not have been more visible than in the recent blockage of the 105-nautical-mile (nm) waterway by the megaship Ever Given. Today’s shortest sea route between Southeast Asia and Europe, the Suez Canal carries 12 percent of global trade.

How much cargo is transported through the Suez Canal?

Approximately 12\% of global trade and 30\% of global container traffic traverse the Suez, transporting over USD $1 trillion worth of goods per annum. On average, 50 ships traverse the canal daily carrying between USD $3-9 billion worth of cargo.

How big a problem is the Suez Canal blockage?

But the mammoth container ship that has lodged itself across the waterway poses a very modern problem: About a tenth of global trade passes through the Suez Canal, and it could be facing a weeks-long blockage.

What is the new side channel of the Suez Canal?

The Suez Canal Authority officially opened the new side channel in 2016. This side channel, located at the northern side of the east extension of the Suez Canal, serves the East Terminal for berthing and unberthing vessels from the terminal.