Recently, the United States has co-opted 30 countries with the intention of forming a joint escort fleet to deal with the Houthis in Yemen. However, the Houthis are not afraid of the United States and directly claim that they will fight to the end. This move makes the Red Sea a new powder keg in the Middle East, where tensions and war could break out at any time. This tension led to the suspension of the Red Sea route. The world's five largest shipping giants have announced that their merchant ships will no longer use the Red Sea shipping lanes, but will instead make a detour to the Cape of Good Hope in Africa. Although the voyage is longer, the profit of the shipping company will be multiplied**. For Egypt, however, the suspension of the Red Sea has made the operating expenses of the Suez Canal no longer exist. The Suez Canal is the lifeblood of Egypt's economy, accounting for about 1 3 of Egypt's GDP. Egypt collects more than $8 billion a year in transit fees from the Suez Canal, which is expected to reach $10 billion by 2023. Moreover, the Suez Canal has also led to the development of various industries, such as hotels, shipping, tourism, etc., and has made a huge contribution to the Egyptian economy. However, the Suez Canal is located at the junction of three continents, Asia, Europe and Africa, and has also become a strategic choke point for the great power game, which is often affected by war.
The Suez Canal is divided into two historical phases, the first is the ancient canal and the second is the modern Suez Canal. The ancient Suez Canal was built under the leadership of the Egyptian pharaoh Sunuset III, but due to the small volume of transportation and the small tonnage of ships, the ancient canal was soon clogged with silt. Until the end of the 18th century, France's Napoleon expedition to Egypt rebuilt the Suez Canal, which became a strategic route for France to control North Africa and penetrate deep into the Middle East. However, after only 3 years of Napoleon's rule in Egypt, Egypt was recaptured by the Ottoman Turks. Subsequently, Egypt sold a 44% stake in the Suez Canal to Britain for 4 million pounds, making Britain the de facto controller of the Suez Canal.
The Suez Canal plays an important role in the global economy, but it is not irreplaceable. In addition to the Suez Canal, global logistics can also be adapted via other routes such as the Cape of Good Hope in Africa, the China-Europe Railway, and the Gulf of Aden to the Red Sea. However, the Suez Canal has a number of advantages that make it the preferred passage for global shipping.
First of all, the Suez Canal is the shortest route connecting the Mediterranean Sea to the Red Sea, significantly reducing the range of the route and the sailing time of ships. Compared to detouring through the Cape of Good Hope in Africa, the Suez Canal can save at least a week, allowing goods to reach their destination faster and improving logistics efficiency.
Secondly, the Suez Canal is a deep-water waterway capable of accommodating the passage of large cargo ships and oil tankers. This allows large ships to reach Europe directly from Asia without the need to transship or split cargo. At the same time, there are modern port facilities and logistics centers along the canal to facilitate the loading and unloading and transshipment of goods.
In addition, the geographical location of the Suez Canal through Egypt is very important. Egypt is located at the crossroads of three continents, Asia, Europe and Africa, and its geographical location makes it easy to transport goods through the Suez Canal. At the same time, the Suez Canal also passes through Egypt's coastal cities, creating a large number of jobs and fiscal revenues for Egypt.
Finally, the Suez Canal is a significant player in the global shipping market. Every year, thousands of ships pass through the Suez Canal, carrying valuable goods and resources. The canal has made a huge contribution to the Egyptian economy, creating a large number of jobs in Egypt and providing considerable tax revenue and foreign exchange earnings.
In summary, the Suez Canal has an irreplaceable role in the global economy and has had an important impact on Egypt and global goods**. Any outage or conflict will have an immeasurable impact on the international** and shipping markets. Therefore, maintaining the smooth flow and stability of the Suez Canal is essential for the development of the global economy.