The recent news spectacle has revolved around a large cargo ship, the ‘Ever Given’, which found itself stuck near the southern end of the Suez Canal due to a mishap triggered by unfavorable weather conditions. This unforeseen accident has caused a colossal congestion of vessels at both ends of this crucial international trade route.
An Overview: Suez Canal
The Suez Canal is an artificial sea-level waterway that runs north to south across the Isthmus of Suez in Egypt. It integrates the Mediterranean Sea and the Red Sea, hence separating the African continent from Asia. The Suez Canal offers the shortest maritime route between Europe and the territories around the Indian and western Pacific oceans. With over 12% of world trade by volume transiting through it, the canal is one of the most heavily used shipping lanes globally.
Significance of the Suez Canal
The Canal holds immense importance for oil, natural gas and cargo being conveyed from East to West. According to Suez Canal Authority (SCA) data, 2020 saw nearly 19,000 ships, or an average of 51.5 ships per day, with a net tonnage of 1.17 billion tonnes passing through the canal, making it a vital income source for Egypt’s economy. The African nation earned USD 5.61 billion in revenues from the canal last year alone.
In 2015, Egypt announced plans to broaden the Suez Canal further to reduce waiting times and double the daily number of ships that can utilize the canal by 2023.
A Glimpse into History: The Suez Canal
Interestingly, the Suez Canal is the first-ever canal to establish a direct link between the Mediterranean Sea and the Red Sea. It was unveiled for navigation in November 1869. In its founding years, the control of this 150-year-old canal was primarily under British and French interests. However, it was nationalized in 1956 by Egypt.
The Suez Crisis
This nationalization of the Suez Canal led to an international crisis in the Middle East, known as the Suez Crisis. It began in July 1956 when the Egyptian president, Gamal Abdel Nasser, nationalized the canal, which was owned by the Suez Canal Company, controlled by French and British interests at that time.
However, the Canal’s operations have not been smooth throughout its history. It was closed five times, with the most recent and severe closure lasting eight years. After this prolonged disruption, the canal reopened for navigation in June 1975.