Suez Canal
❖ Cash-strapped Egypt has increased transit fees for ships passing
through the Suez Canal with hikes of up to 10%.
❖ In 2021, A large cargo ship named 'Ever Given' got stuck near the
southern end of the Suez Canal due to a mishap caused by bad
weather.
● This is causing a huge jam of vessels at either end of the vital
international trade artery.
Key Points
● About:
○ The Suez Canal is an artificial sea-level waterway running
north to south across the Isthmus of Suez in Egypt, to
connect the Mediterranean Sea and the Red Sea.
○ The canal separates the African continent from Asia.
○ It provides the shortest maritime route between Europe and
the lands lying around the Indian and western Pacific oceans.
○ It is one of the world’s most heavily used shipping lanes,
carrying over 12% of world trade by volume.
■ It provides a crucial link for oil, natural gas and
cargo being shipped from East to West.
■ As per Suez Canal Authority (SCA) data, in 2020,
nearly 19,000 ships, or an average of 51.5 ships per
day, with a net tonnage of 1.17 billion tonnes passed
through the canal.
○ The canal is a major source of income for Egypt’s
economy, with the African country earning USD 5.61 billion in
revenues from it last year.
■ In 2015, Egypt announced plans to further expand the
Suez Canal, aiming to reduce waiting times and double
the number of ships that can use the canal daily by
2023.
● History:
○ The Suez Canal is actually the first canal that directly links
the Mediterranean Sea to the Red Sea. It was opened for
navigation in November 1869.
○ The 150-year-old canal was controlled by British and
French interests in its initial years, but was nationalised in
1956 by Egypt.
■ Suez Crisis, international crisis in the Middle East,
precipitated in July 1956, when the Egyptian president,
Gamal Abdel Nasser, nationalized the Suez Canal. The
canal had been owned by the Suez Canal Company,
which was controlled by French and British interests.
○ The Canal was closed five times; the last time was the most
serious one since it lasted for 8 years. The Canal was then
reopened for navigation in June 1975.