Suez Canal is that the largest man-made artificial sea-level waterway found in Egypt.
Suez Canal is owned and maintained by the Suez Canal Authority of the Arab Republic of Egypt.
Suez Canal attracts tons of tourists who come to ascertain the amazing wonders of this artificial sea. It is the primary salt water passage between the Mediterranean and Red Seas. The canal has attracted attention from film makers. a movie referred to as Suez was made in 1938 and it’s supported the canal’s history. Also within the novel 20,000 Leagues Under the ocean by Verne , a personality referred to as Nautilus travels through an underwater passage beneath the Suez Canal . of these highlight the canal as a really import part in opening up Africa to other parts of the planet .
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Effects of the Suez Canal on Global Trade
The Suez Canal is a man-made waterway located in Egypt which connects the Mediterranean to the Red Sea, making it ideal for trade. Recently, a large ship, the mammoth cargo ship, became lodged in the canal, making it impossible for hundreds of ships to pass by from and to their destinations, potentially causing an effect on global shipping which could take weeks or months to reverse. As of Monday, March 29th, 2021, the large ship has been dislodged with the help of dredgers, making the Suez Canal open again.
This event doesn’t come at a worse time with $9 billion in global trade a day being held up on top of the coronavirus pandemic causing a burden on supply chains. These ships carried everything from crude oil to cattle and everything in between. It is expected that the blockage will clear within the next week, however, congestion will be followed through the European and Asian ports, a common destination for these 400+ ships, potentially lasting a few months. Not only are current packages and boxes amidst global shipping delayed, but items to be shipped out over the next undetermined period will also experience the delay.
As the global economy has been slowly recovering from the all-time lows due to the coronavirus, global freight rates have seen a major spike, which will be further increased due to these delays. Due to the nature of some of the items shipped, some products may become spoiled or arrive past their time-constrained deadlines – such as Easter products – making these items useless. In addition, due to many products incorporating parts imported from other countries, many manufacturers will experience a delay in their factories as well, on top of the delays added to their shipping time. For ships who had the option to reroute, they chose to go around the Cape of Good Hope in Africa, adding 10 days to 3-weeks to their route, adding to the potential delays.
Despite this event perhaps being a once-in-a-lifetime circumstance, the effects on global shipping will be felt for a long time to come, however, it is unlikely global shipping as a whole will change. The Suez Canal is here to stay as global shipping resumes.