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2021-03-26

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What Is the Suez Canal and Why Is It So Important?

The Suez Canal, which cuts through Egypt to connect the Mediterranean and Red seas, is so important

What Is the Suez Canal and Why Is It So Important?

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That strategic shipping lane was completely blocked on March 23, when the heavily laden cargo ship Ever Given, longer than the Eiffel Tower is tall, went askew in heavy winds and got its bow wedged into the side of the waterway. The mishap snarled international shipping amid efforts by&nbsp;elite teams&nbsp;to refloat the massive vessel.</p>\n<p><b>1. What’s the Suez Canal?</b></p>\n<p>The&nbsp;193 kilometer(120 mile) man-made waterway cuts through Egypt to connect the Mediterranean Sea to the Red Sea, and by extension the Atlantic and Indian oceans. That makes it a key transit point for ships moving goods between Asia and Europe and the eastern U.S. It entered service in 1869, 45 years before the&nbsp;Panama Canal, which is much shorter, linking the Pacific and Atlantic oceans. The sea-level canal is the longest in the world&nbsp;without locks, with a normal transit time from end to end of about 13-15 hours, according to&nbsp;GlobalSecurity.org.</p>\n<p><b>Container Ship Blocking Suez Canal Paralyzes Trade</b></p>\n<p><b>2. Why is it so important?</b></p>\n<p>About 12% of world trade passes through the canal each year, everything from crude oil to grains to&nbsp;instant coffee. Without Suez, a supertanker carrying Mideast crude oil to Europe would have to travel an&nbsp;extra 6,000 miles&nbsp;around Africa’s Cape of GoodHope, adding some $300,000 in fuel costs (although there would be savings from avoiding the Suez passage tolls, which can run hundreds of thousands of dollars.) Because it has no locks, it can even handle aircraft carriers.</p>\n<p><b>3. What travels through it?</b></p>\n<p>Just about every good imaginable, adding up in 2019 to&nbsp;1.03 billion tons&nbsp;of cargo, according to theSuez Canal Authority. That’s roughly four times more than passed through the&nbsp;Panama Canal. 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. Among other goods, 54.1 million tons of cereal passed through the canal, 53.5 million tons of ores and metals and 35.4 million tons of coal and coke in 2019.</p>\n<p><b>4. What are the origins of the canal?</b></p>\n<p>The idea dates back to&nbsp;antiquity&nbsp;but it wasn’t until the mid 19th century that Egypt’s Ottoman viceroy Said Pasha granted a French company a concession to build the canal. The project took 10 years and some 1.5 million laborers and cost $100 million, twice the initial estimate. The canal entered service in 1869 but its owners faced financial difficulties shortly after and were forced to selling a controlling stake to the U.K., which ran the canal for the next eight decades.</p>\n<p><b>5. Who owns it today?</b></p>\n<p>Egypt’s anti-colonial President Gamal Abdel Nasser nationalized the canal in 1956, a move that sparked the&nbsp;Suez Crisis&nbsp;that same year when Israeli, British and France forces staged an invasion of the Sinai and canal zone. The crisis, which ended after the U.S. intervened against the invasion, resulted in the canal’sclosurefor a year. (It also saw the first&nbsp;UN peacekeeping force.) A decade later, the 1967 Israeli-Arab war prompted Egypt to close Suez to ship traffic for eight years as Egyptian and Israeli forces faced off across the water. Today, the canal is operated by the state-owned Suez Canal Authority and is a major money-earner for Egypt’s government, generating&nbsp;$5.61 billion&nbsp;in revenue last year. An $8 billion&nbsp;expansion&nbsp;of the canal was launched in 2015 with the goal of increasing ship traffic and more than doubling revenue.</p>","source":"lsy1584095487587","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What Is the Suez Canal and Why Is It So Important?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat Is the Suez Canal and Why Is It So Important?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-03-26 14:46 GMT+8&nbsp;&nbsp;&nbsp;<a href=http://bloomberg.com/news/articles/2021-03-26/what-is-the-suez-canal-and-why-is-it-so-important-quicktake?srnd=markets-vp><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The Suez Canal, which cuts through Egypt to connect the Mediterranean and Red seas, is so important to world trade that world powers have fought over it since it was completed in 1869. That strategic ...</p>\n\n<a href=\"http://bloomberg.com/news/articles/2021-03-26/what-is-the-suez-canal-and-why-is-it-so-important-quicktake?srnd=markets-vp\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".SPX":"S&P 500 Index",".IXIC":"NASDAQ Composite",".DJI":"道琼斯"},"source_url":"http://bloomberg.com/news/articles/2021-03-26/what-is-the-suez-canal-and-why-is-it-so-important-quicktake?srnd=markets-vp","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1122027279","content_text":"The Suez Canal, which cuts through Egypt to connect the Mediterranean and Red seas, is so important to world trade that world powers have fought over it since it was completed in 1869. That strategic shipping lane was completely blocked on March 23, when the heavily laden cargo ship Ever Given, longer than the Eiffel Tower is tall, went askew in heavy winds and got its bow wedged into the side of the waterway. The mishap snarled international shipping amid efforts by elite teams to refloat the massive vessel.\n1. What’s the Suez Canal?\nThe 193 kilometer(120 mile) man-made waterway cuts through Egypt to connect the Mediterranean Sea to the Red Sea, and by extension the Atlantic and Indian oceans. That makes it a key transit point for ships moving goods between Asia and Europe and the eastern U.S. It entered service in 1869, 45 years before the Panama Canal, which is much shorter, linking the Pacific and Atlantic oceans. The sea-level canal is the longest in the world without locks, with a normal transit time from end to end of about 13-15 hours, according to GlobalSecurity.org.\nContainer Ship Blocking Suez Canal Paralyzes Trade\n2. Why is it so important?\nAbout 12% of world trade passes through the canal each year, everything from crude oil to grains to instant coffee. Without Suez, a supertanker carrying Mideast crude oil to Europe would have to travel an extra 6,000 miles around Africa’s Cape of GoodHope, adding some $300,000 in fuel costs (although there would be savings from avoiding the Suez passage tolls, which can run hundreds of thousands of dollars.) Because it has no locks, it can even handle aircraft carriers.\n3. What travels through it?\nJust about every good imaginable, adding up in 2019 to 1.03 billion tons of cargo, according to theSuez Canal Authority. That’s roughly four times more than passed through the Panama Canal. 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. Among other goods, 54.1 million tons of cereal passed through the canal, 53.5 million tons of ores and metals and 35.4 million tons of coal and coke in 2019.\n4. What are the origins of the canal?\nThe idea dates back to antiquity but it wasn’t until the mid 19th century that Egypt’s Ottoman viceroy Said Pasha granted a French company a concession to build the canal. The project took 10 years and some 1.5 million laborers and cost $100 million, twice the initial estimate. The canal entered service in 1869 but its owners faced financial difficulties shortly after and were forced to selling a controlling stake to the U.K., which ran the canal for the next eight decades.\n5. Who owns it today?\nEgypt’s anti-colonial President Gamal Abdel Nasser nationalized the canal in 1956, a move that sparked the Suez Crisis that same year when Israeli, British and France forces staged an invasion of the Sinai and canal zone. The crisis, which ended after the U.S. intervened against the invasion, resulted in the canal’sclosurefor a year. (It also saw the first UN peacekeeping force.) A decade later, the 1967 Israeli-Arab war prompted Egypt to close Suez to ship traffic for eight years as Egyptian and Israeli forces faced off across the water. Today, the canal is operated by the state-owned Suez Canal Authority and is a major money-earner for Egypt’s government, generating $5.61 billion in revenue last year. An $8 billion expansion of the canal was launched in 2015 with the goal of increasing ship traffic and more than doubling revenue.","news_type":1},"isVote":1,"tweetType":1,"viewCount":480,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":3,"xxTargetLangEnum":"ORIG"},"commentList":[],"hasMoreComment":false,"orderType":2}