How important is the Suez Canal to the US?

Overview. The recent grounding of the Ever Given container vessel has underscored the importance of the Suez canal for global freight and supply lines. Approximately 12\% of global trade and 30\% of global container traffic traverse the Suez, transporting over USD $1 trillion worth of goods per annum.

What goods are affected by Suez Canal?

If the blockage persists, the disruption could ripple through the arteries of the global economy, affecting the flow of oil, chemicals, apparel, iron ore and manufactured goods. About 13 percent of world trade passes through the Suez Canal, according to Allianz, an investment firm.

Why is the Suez Canal an important waterway?

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 goods did the Suez Canal affect?

What happened to the Suez Canal blockage?

A satellite image shows stranded container ship Ever Given after it ran aground in Suez Canal, Egypt March 25, 2021. The Ever Given, one of the world’s largest container ships, is still wedged in the Suez Canal, and the economic effects from the blockage — now in its fourth day — are beginning to unfold.

How many ships pass through the Suez Canal each day?

It’s completely blocked the passageway that is home to as much as 12\% of the world’s seaborne trade and through which 50 container ships normally transit per day. Tugboats and dredgers are currently working to dislodge the ship, which has been stuck since Tuesday evening.

What does the Suez Canal shutdown mean for global trade?

The shutdown of the vital waterway and its impact on trade underscore the world’s reliance on global supply chains. The Ever Given, a container ship operated by a company called Evergreen, blocked all traffic in the Suez Canal when it became wedged there.

Will the Suez Canal crisis cause higher oil prices?

Prices at the pump, already on the rise, could spike further, as the canal is a major artery for oil transport. Global shipping giant Maersk has seven container vessels affected and is keeping an eye on the impasse.