Suez Canal: Strategic Maritime Gateway

Prelims Bits

Context

The ongoing tensions between Iran and Israel have raised concerns about rising oil prices and further disruptions to global trade. A key point of vulnerability is the Suez Canal.

Overview of the Suez Canal

• The Suez Canal is a man-made waterway, stretching 193 km, linking the Red Sea with the Mediterranean Sea via the Isthmus of Suez in Egypt.

• Construction took over 10 years, and it was formally opened on November 17, 1869.
• It is among the most critical maritime corridors globally, facilitating direct navigation between the Mediterranean Sea and the Indian Ocean.
• The Panama Canal is another globally important maritime route, connecting the Atlantic and Pacific Oceans.

Why the Suez Canal Is Crucial

• Geostrategic Route:
  Serves as a vital transit point for shipping between Europe and Asia by connecting the Mediterranean with the Red Sea.
• Reduces Transit Time and Distance:
  Eliminates the need for ships to sail around the Cape of Good Hope, thereby cutting travel distance by approximately 7,000 km, saving both time and fuel.
• Global Trade Lifeline:
  According to the IMF, about 12–15% of global trade passes through the canal. It is also vital for the movement of 8–9% of global energy supplies.
• Importance for India:
  Nearly 80% of India’s exports to Europe use this route, making it essential for India’s foreign trade, particularly through the Red Sea corridor.

Challenges and Risks Associated with the Suez Canal

• Traffic Congestion:
  Despite recent expansions, the canal (about 205 metres wide and 24 metres deep) often experiences heavy traffic and shipping delays.
  Example: In March 2021, the container ship Ever Given ran aground, blocking the canal for several days and halting global trade flows.
• Geopolitical Flashpoint:
  The canal has been at the centre of historical conflicts, including the 1967 and 1973 Arab-Israeli wars, during which it remained closed for eight years (1967–1975).
• Rising Trade Costs:
  Due to regional instability in the Red Sea, rerouting cargo ships around Africa significantly increases shipping time and freight costs.
• Security Risks:
  Maritime piracy, drone attacks, and regional conflicts pose increasing threats to commercial vessels passing through this vital channel.

Other Strategic Maritime Routes

Strait of Hormuz

• Geography:
  Located between Iran and Oman, at the entrance of the Persian Gulf. It links the Gulf to the Gulf of Oman and onward to the Arabian Sea.

• Dimensions:
  At its narrowest, the strait is 33 km wide, with shipping lanes only 3 km wide in each direction.
• Global Energy Artery:
  Around 20% of globally traded oil and nearly all of Qatar’s LNG exports pass through this narrow strait, making it one of the world’s most sensitive energy chokepoints.

Panama Canal

• Opened in 1914, the Panama Canal connects the Atlantic Ocean to the Pacific Ocean across the Isthmus of Panama.
• Reduces voyage distance for ships traveling between U.S. East and West Coasts by nearly 8,000 nautical miles, avoiding the treacherous journey around Cape Horn at the tip of South America.