The Iran-allied group says the aim of the attacks is to support the Palestinians at a time when Israel is waging a war on Gaza.
The process of rerouting increases the cost and time of ship trips. As a result, oil prices and war risk insurance premiums rose.
What is the Suez Canal?
The Suez Canal, which is 192 kilometers long, is the fastest sea route between Asia and Europe.
The canal is one of seven geographic choke points and is critical to global oil trade, and is vulnerable to disruption or pirate attacks.
The US Energy Information Administration, citing Vortexa data, said that about 9.2 million barrels per day of oil flowed through the canal in the first half of 2023, which represents about nine percent of global demand.
– Energy Aspects consulting company said that about four percent of global liquefied natural gas imports, estimated at 391 million tons in 2023 so far, have passed through the canal.
– Fee revenues paid by ship owners are an important source of income for the Egyptian economy, and reached a record level of $9.4 billion in the year to June 30.
– The canal can accommodate more than 60 percent of the total global fleet of tankers when fully loaded, and more than 90 percent of bulk carriers. It can also accommodate all container carriers, car carriers and general cargo ships.
– A ship carrying Saudi crude from the Gulf can reach Rotterdam, for example, a distance of 6,436 nautical miles if it transits the canal. The route around Africa increases the distance to 11,169 nautical miles, increasing time and cost for the shipowner.
What has been the impact on channel navigation so far?
On December 17, the Suez Canal Authority said that since November 19, 55 ships had changed their course to the Cape of Good Hope route, while 2,128 ships passed through the canal in the same period.
Two major shipping companies, including Mediterranean Shipping Company (MSC), the world’s largest container shipping company, said on Saturday that they would avoid the Suez Canal as the Houthis escalate their attacks.
– Osama Rabie, Chairman of the Suez Canal Authority, said that on December 17, 77 ships passed through the canal, including some ships belonging to shipping lines that announced a temporary diversion of their course. These ships were already present in the Red Sea region before the decisions were issued.
On December 18, major oil company BP temporarily suspended all transit operations through the Red Sea.
brief history
The first canal was built during the reign of Senusret III (1887-1849 BC) to connect the Mediterranean Sea and the Red Sea via the Nile River and its branches.
– French engineer Ferdinand de Lesseps planned a new waterway to connect the Mediterranean Sea to the Gulf of Suez and the Red Sea. Work on it took ten years and was opened in November 1869.
The canal separates the African continent from Asia and provides the shortest sea route between Europe and the regions of the Indian Ocean and the Western Pacific Ocean. It is one of the most used shipping lanes in the world.
Egypt announced the nationalization of the canal in 1956, which prompted Britain and France, along with Israel, to wage war. The tripartite aggression, or the “Suez Crisis,” did not end until Egypt sank 40 ships in the canal and the United States, the Soviet Union, and the United Nations intervened, forcing Britain, France, and Israel to withdraw.
In June 1967, Egypt and some Arab countries fought a war with Israel, during which Israeli forces advanced to the eastern bank of the Suez Canal before agreeing to a ceasefire. The canal was severely damaged during the fighting and remained closed until after the 1973 Yom Kippur War.
Egypt regained full control of the canal after the October War and it was reopened in June 1975.
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2023-12-19 00:18:39
