Why in news?

• Recently, a tanker transporting crude oil broke down in a single-lane part of Egypt’s Suez Canal, briefly disrupting traffic in the global waterway.
• The Malta-flagged Seavigour suffered a mechanical malfunction in a single-lane part of Egypt’s Suez Canal.
• The tanker was part of the north convoy, which transits the canal from the Mediterranean to the Red Sea.

What’s in today’s article?

• Suez Canal
• News Summary

Suez Canal

• 
• About
  • The canal connects Port Said on the Mediterranean Sea to the Indian Ocean via the Egyptian city of Suez on the Red Sea.
  • It serves as a crucial international shipping route, allowing vessels to navigate between Europe and Asia without having to circumnavigate the African continent.
• Geographical location
  • The Suez Canal is situated in north eastern Egypt, spanning across the Isthmus of Suez.
  • It extends approximately 120 miles (193 kilometers) from the city of Port Said in the north to the city of Suez in the south.
  • The canal separates the African continent from the Sinai Peninsula.
• History Associated with the Suez Canal
  • The idea of constructing a canal across the Isthmus of Suez dates back to ancient times. However, it was during the nineteenth century that significant efforts were made.
  • In 1858, the Universal Suez Ship Canal Company was tasked to construct the canal. The French and British held most of the shares in this company.
  • The 193 km long canal was opened for international navigation in 1869.
  • Until 1956, British powers controlled the canal. In 1956, during the Suez Crisis, Egypt nationalized the canal.
  • The canal remained under the control of the Suez Canal Authority until 1957 when it was reopened for international navigation.
• Importance of Suez Canal
  • For International trade
    • The canal carries – 12% of world trade, 7% of world’s oil, 30% container - ship daily.
    • Since, the canal has no locks, it can even handle aircraft carriers.
    • The canal provides direct route between Europe and Asia. This saves the fuel and brings down the transportation cost thereby making the international trade cheaper.
  • For Energy Security
    • The canal’s location makes it a key link for shipping crude oil and other hydrocarbons from countries such as Saudi Arabia to Europe and North America.
  • For Egypt
    • The canal contributed 2% of Egypt’s GDP pre-pandemic.
    • According to the Suez Canal Authority, last year, 23,851 vessels passed through the waterway, compared to 20,649 vessels in 2021.
    • It is a major source of revenue for Egypt.The revenue from the canal in 2022 reached $8 billion.
  • For India
    • Indian trade worth $200 billion to/from North America, South America and Europe is carried out using this route.
    • For India, it is a major route for import and export of ethane with the US, and the imports of crude from Latin America. Hence, it is important for India’s energy security.
    • It enables the Indian Navy to project its presence in the region and participate in global naval operations. This highlights its strategic importance for India.