Lessons from the Suez Canal crisis

The accident led to the ship suffocating off the Suez Canal, a man-made strait that sees more than one-tenth of all global shipments pass each year, for about a week. While it did not offer an end to the memos and fun on social media, the ban cost an estimated $ 9.6 billion in daily delay and served as a reminder of just how much the global economy has continued to move at sea – nearly 70 percent of everyone. International trade, and it could take another week to clear the traffic congestion of hundreds of ships and other carriers waiting to make the same lane. The supply chain impacts of these disruptions could persist over the next several months. Today WorldView looks at other lessons from the recent Suez Crisis, and it is a global story. Egyptian President Abdel Fattah El-Sisi hailed the release of the ship as a national success for his countrymen. My colleagues pointed out that “he portrayed the efforts as a national victory that assured the world that Egypt can be trusted to oversee 13 percent of the total world trade that passes through the important waterway.” Floating – or in this case, “re-float” – the UN. Consider the mega container ship itself: The MV Ever Given was owned by a company in Japan, operated by a container shipping company based in Taiwan, operated by a German company registered in Panama, and its 25 crew members were of Indian nationality, and the ship’s voyage saw it transporting goods from Asia to Europe, specifically the Dutch port of Rotterdam. A consortium of a Dutch rescue company and local Egyptian tugboat operators, whose ordeal has highlighted the fragility of the global economy. A century and a half ago, the Suez Canal was opened. Ed is an era of global fast charging that only accelerated in the decades that followed. Meanwhile, over the past half-century, the carrying capacity of cargo ships has spread by about 1,500%, expanding the range of consumer goods available and reducing prices around the world, notes Peter Goodman of The New York Times. Creating congested arteries such as the Suez Canal. “Ships today are bigger than they were before,” a Suez Canal Authority pilot told my colleagues, noting that the task of sailing ships like Ever Geffen across the canal has become more taxing. “This is something new. We have not seen this before.” The weaknesses of an interconnected world, where a single product can be produced and delivered through supply chains connecting multiple continents, also emerge. My journalist wrote: “For global trade, which is already suffering from high prices. Shipping, equipment shortages and space crisis on ships In the wake of the disruptions caused by the epidemic, the establishment of “Evergiven” could not have come at a worse time. “Manoj in the Indian Hindu newspaper.” The disruptions caused by the closure of the canal could last for months, and it is expected that Port congestion, equipment shortages, and ship capacity are severely affected. “Even shipments that do not pass through Suez will be affected, as factories wait for essential components to come from elsewhere before they can manufacture products to send,” former sailor merchant Salvatore Mercogliano wrote to Outlook’s Post. Gas and oil prices will go up. ”The accident also revived talk of alternative routes – from the old, but longer and more expensive journey around the southern tip of Africa to the promise of a northern corridor in the Arctic like melting ice at the roof of the world opens new paths. Russia for International Cooperation in the Arctic, Friday: “The Suez Canal incident should make everyone think about diversifying strategic sea routes amid the increasing scope of shipping.” A world of choke points. The Suez Canal blockage provided a powerful reminder of just how important a handful of major sea lanes are to the entire global economy, as well as the strategic calculations of regional powers. A crisis there, the Panama Canal, the Strait of Malacca, or the Strait of Hormuz could disrupt global markets and, depending on the context, lead to potential confrontations between rival navies. A glimpse into the thorny crises to come. China relies on huge imports of oil and iron ore, and arguably the bulk of its foreign policy – including its ambitious Belt and Road initiative – is to secure distant trade networks. An exporter of ore these days, China imports nearly three-quarters of the oil it consumes, plus about four-fifths of the iron ore it uses to fuel its hectic pace of building infrastructure – not to mention most of the commodity exports that David Fekling and Anjani Trivedi books use from Bloomberg Opinion to “obtain Hard currency to pay for these goods, “they added,” This makes it particularly vulnerable to a naval blockade. The East Asian geography means that the Straits of Malacca and Singapore, in addition to the semi-straits that pass through the navigable stretches of the South China Sea and those separating Taiwan from the Philippines, and the Okinawa islands. ” Japan and the Chinese mainland are all extremely vulnerable. In other words, choke points like the Suez Canal must be greater sites of geopolitical rivalry and tension. James Stavridis, a retired US admiral and former NATO supreme commander, argued that it is an additional reason for global powers to find order Collective to manage it. “In all these locations, we must focus heavily on establishing international authorities to administer them with appreciation for their international character (both the Suez and Panama canals have them Well-managed powers); Conducting frequent drills and exercises to rehearse disasters such as the one that just happened in the Suez Canal; Has internationally funded resources to ensure it can remain open in crises (as has been done on an ad hoc basis in Suez); It has an international system with regulatory powers that searches them all repeatedly. ”