A Huge container ship called “Ever Given” ran around and blocked the Suez Canal on March 29, 2021. Suez Canal is one of the world’s busiest canals, heavily operated for shipping routes. It carries 12% of world trade volume and connects Asia with Europe.
It took over ten years to build this canal in the mid-1800s, but it got blocked in just a day. This single ship blocked the canal and the path of 400+ other cargo ships. Therefore, it had a significant impact on the world’s trade that we will discuss here today.
Impact of the Suez Canal Crisis
#1. The Suez Canal crisis impacted Egypt’s GDP. It contributed 2% to the GDP of Egypt before the COVID-19 pandemic.
#2. It also increased the prices of crude oil and other goods like coffee, laptops, and toilet paper.
#3. Many countries also faced a shortage of semiconductor chips.
#4. European countries, including the UK, Belgium, Italy, and Switzerland, were also affected due to the Suez Canal Crisis. The top industries of Europe faced a shortage of automobile parts and other goods.
#5. Many industries were already grappling with various shocks of container shortage and even delays in cargo unloading. But due to the Suez Canal crisis, the prices of shipment costs also increased.
Wrap Up
The Suez Canal is an artery of world trade because it carries 12% of the total trade. It connects Asia, the Middle East, and Europe to keep the proper flow of world trade. These vessels execute a trade of over $400 million every single hour. Hence, if any blockage appears in this busy canal due to strong wind or technical error, it can significantly affect world trade.
Other Posts
How To Become A Virtual Assistant?
8 Effective Ways On How To Save For A Car
