Rapid Fire
Suez Canal
- 21 May 2025
- 2 min read
The Red Sea security crisis, triggered by Houthi attacks on commercial vessels, drastically disrupted shipping traffic through the Suez Canal, leading Egypt’s Suez Canal Authority to offer a discount on transit fees to incentivize the return of cargo ships amid lingering regional risks.
- Suez Canal: The Suez Canal is an artificial sea-level waterway running north–south across Egypt’s Isthmus of Suez. It is a vital international shipping route, connecting the Mediterranean Sea to the Indian Ocean via the city of Suez on the Red Sea.
- Geographically, the canal lies in northeastern Egypt, spanning the Isthmus of Suez.
- It stretches from Port Said in the north to Gulf of Suez in the south, effectively separating the African continent from the Sinai Peninsula, and forms the shortest maritime route between Europe and the Indian and Pacific Oceans.
- Significance: The canal accounts for approximately 12-15% of global trade and nearly 30% of global container traffic before the crisis. It serves as a key passage for 8-9% of global energy flows.
- India and Suez Canal: India relies heavily on the Red Sea route, with nearly 80% of export volumes to Europe transiting the canal.
| Read more: Escalating Threat in Red Sea |
