Why is the Suez Canal so important for global trade?
Posted on Aug 01, 2025 / Travel
The Suez Canal drastically cuts the shipping distance between Europe and Asia, saving around 7,000 kilometers (4,350 miles) compared to the alternative route around Africa’s Cape of Good Hope. This reduction means faster delivery times and lower fuel costs for shipping companies. About 12% of global trade passes through the canal, including a significant portion of the world’s oil and liquefied natural gas. Its efficiency keeps supply chains moving and goods flowing worldwide. Any disruption to the canal, like the famous 2021 blockage by the Ever Given ship, can have massive ripple effects on global markets. For many countries, the canal is a lifeline for importing and exporting goods. Its role as a strategic chokepoint also makes it a focus of international political interest.
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