IT’S OVER: The Suez Canal Has FINALLY Dried Up
[Music]
today the Suz Canal facilitates up to
20,000 transits per year which totals
approximately 1.17 billion tons of cargo
worth around $800 billion it is the
jugular of global trade and rightfully
so as it facilitates Global Commerce and
trade between Europe Asia and Beyond
connecting the Mediterranean Sea to the
Red Sea it significantly reduces the
time and cost of Maritime transportation
between Europe and Asia however all of
this may change sooner than we’d want
stick around as we explore the reasons
behind this impending crisis and its
potential
ramifications Russia’s need for another
Suez
Canal when the Soviet forces steamrolled
into Afghanistan in 1979 neighboring
Pakistan feared that it would be next
president Zia UL haak was almost certain
that Russia wanted to access warm Waters
through Pakistan’s Coastline this led to
a decade of proxy war between Pakistan
aided by its Western allies and the
mighty Soviet Union until the latter
withdrew from Afghanistan and eventually
disintegrated fast forward to today’s
time Russia’s need for access to warm
Waters has not gone away but why isn’t
the country surrounded by water on two
sides well yes but the country’s
24,40 km long coastline along the Arctic
Ocean is largely Frozen for a
significant portion of the Year limiting
access to its northern ports this
Geographic constraint has historically
hindered Russia’s ability to exploit its
Maritime potential and engage in global
trade fully to overcome this challenge
Russia has pursued various strategies to
gain access to warmer Waters one
approach has been to seek control or
influence over territories with access
to seas and oceans with milder climates
this includes territories such as Crimea
which provides access to the Black Sea
and kaliningrad a Russian exclave on the
Baltic Sea but considering Russia’s size
and the volume of products it needs to
move in both directions it needs
something much bigger much
grander this ambition in itself is
nothing new two centuries ago the Great
Western Powers faced a similar
predicament in the 19th century European
powers were increasingly reliant on
Maritime trade routes for their economic
Prosperity however their access to key
trade routes was limited by geographical
barriers this led to a growing desire
among Western Powers particularly
Britain to find a way to bypass these
barriers and establish a more direct
route to the lucrative markets of Asia
the construction of the Suez Canal in
the mid 19th century marked a
significant milestone in addressing this
challenge the canal completed in
1869 provided a shortcut between the
Mediterranean Sea and the Red Sea
allowing ships to avoid the lengthy and
perilous Journey around the southern tip
of Africa this new route not only
facilitated trade between Europe and
Asia but also enhanced the Strategic
position of the countries controlling it
similarly Russia has explored
alternative transportation routes to
bypass its frozen Northern ports
projects such as the Northern sea route
which traverses the Arctic oan along
Russia’s northern coast have been
promoted as potential solutions to
facilitate Maritime trade however these
efforts have been hampered by challenges
of their own the Northern sea route for
example is only navigable for a limited
portion of the year and requires
significant investment in infrastructure
and Icebreaker support Russia has also
sought to bolster its presence in
regions with access to warmer Waters
through military and diplomatic means
this includes interventions in regions
such as the Middle East and Central Asia
where Russia has sought to assert its
influence and secure strategic footholds
the country’s quest for access to warm
Waters reflects its broader geopolitical
Ambitions and strategic imperatives by
overcoming its Geographic challenges
with Coastline and ports Russia aims to
strengthen its position as a global
player however the cost of this ambition
will be the death of the Suez Canal but
before we get to it let’s get some
context how the Suez Canal
revolutionized global trade if ships
could move over land global trade and
Maritime traffic in the 16th century
could be made to go much faster cutting
through the Egyptian Heartland ships
could Venture straight into the Red Sea
from the Mediterranean thus avoiding the
costly sail across the tip of Africa of
course ships can’t move on
land the ottoman Grand vizer Saku mhmed
Pasha thus proposed the next best thing
a canal linking the Red Sea and the
Mediterranean the Ottomans sought to
establish a direct Maritime route
between Constantinople and the lucrative
trade routes of the Indian Ocean thereby
enhancing their access to valuable goods
and
resources furthermore as European powers
expanded their presence and influence in
the Indian Ocean the Ottoman Empire
faced increasing challenges to its
Mercantile and strategic
interests the construction of a
navigable Canal would not only only
bolster the ottoman Navy’s capabilities
but also strengthen the Empire’s
position in the face of external
pressures however despite the Strategic
importance of the project it was
ultimately deemed too costly and
ambitious to complete two centuries
later during Napoleon bonapart campaign
in Egypt and Syria the idea of a canal
linking the Mediterranean and the Red
Sea resurfaced Napoleon’s men
rediscovered an ancient Canal extending
from the Red Sea northward and then
Westward toward the Nile inspired by
this discovery Napoleon now emperor of
France entertained the idea of
constructing a North South Canal to
connect the Mediterranean with the Red
Sea however his men had incorrectly
believed that the Red Sea lay
significantly higher than the
Mediterranean this complicated the
entire project and led to its
abandonment but in terms of vision he
was far from alone amidst the backdrop
of Colonial expansion and burgeoning
trade routes the idea of a shortcut to
the east captured the imaginations of
Visionaries and entrepreneurs alike in
the early 19th century as Egypt found
itself under the rule of Muhammad Ali A
Viceroy of the Ottoman Empire the Allure
of connecting the Mediterranean and Red
Seas persisted despite daunting
challenges in 1854 and 1856 a certain
Frenchman Ferdinand deeps secured a cons
session from his longtime friend sad
Pasha the deao ruler of Egypt and Sudan
to realize his audacious Vision the
construction of a canal that would unite
the Mediterranean and Red Seas open to
vessels of all nations with the green
light from s deeps wasted no time in
assembling a formidable team of experts
following exhaustive surveys and
spirited deliberations in Paris on
December 15th 1858 the Suez Canal
company was born
however the British government staunch
opponents of the project viewed it with
trepidation fearing that the Canal’s
completion would upset the established
order of Maritime trade Lord Palmerston
a formidable adversary of the Venture
candidly admitted that Britain’s
commercial and Maritime dominance hung
in the balance diplomatic Maneuvers were
deployed in a bid to thwart the project
despite initial skepticism and lukewarm
reception abroad deeps rallied support
for the venture with the backing of the
Kata banking family and the influential
James de Rothchild of the French House
of Rothschild shares in the Suez Canal
company found eager buyers in France and
Beyond while British Austrian and
Russian interests remained cautious
French enthusiasm propelled the project
forward laying the groundwork for one of
the most ambitious engineering Feats of
the 19th
century the Monumental task of
Excavating the Suz Canal commenced on
April 25th
1859 over the course of a decade from
1859 to
1869 the Relentless clang of pickaxes
and shovels echoed across the ismos as
thousands toiled under the scorching Sun
forced labor was employed until
1864 compelling multitudes from various
corners of the globe to participate in
the Monumental
undertaking some estimates suggest that
at any given time over 30,000 laborers
toiled along the Canal’s l length with a
staggering 1.5 million individuals
engaged in the arduous labor throughout
the Project’s
duration however the toll is measured
not only in sweat and toil but in lives
lost chera and other epidemics exacted a
heavy tax on the workforce claiming the
lives of tens of thousands of laborers
while the exact number of casualties
remains a matter of debate with
estimates ranging widely the human cost
of this monumental Endeavor cannot be
overstated however the losses were
buried under the excitement of the grand
inauguration of the Suez Canal in
November
1869 dignitaries and luminaries from
around the world gathered to witness the
realization of a centuries old dream the
festivities commenced on the evening of
November 15th at Port SED Ablaze with
illuminations fireworks and the opulent
Splendor of a banquet hosted aboard the
yacht of kiv Ismael Pasha of Egypt and
Sudan among the esteemed guests were
Emperor France Joseph I the French
Empress ueni the Crown Prince of Prussia
and Prince Louie of
Hessa the following day amidst a
backdrop of Muslim and Christian
blessings A procession of ships embarked
on a historic Journey Through the
Canal’s shimmering Waters yet amid the
Jubilation concerns arose regarding the
depth and navigability of certain
sections of the canal these fears were
soon realized when the French ship pelo
ran ground however the Convoy pressed
onward ismia became the next focal point
of Celebration with military parades
illuminations and Grand balls
punctuating the air with an air of
festivity the journey culminated in Suez
where further revelries awaited before
many of the participants embarked on a
pilgrimage to Cairo and the a inspiring
pyramids however despite the Triumph of
its completion the Suez Canal faced
initial challenges both financial and
operational the Project’s final cost
exceeded initial estimates and traffic
in the first years fell below
expectations however the world suddenly
became more accessible the Canal’s
completion had profound economic
implications particularly for the
European Mediterranean countries which
enjoyed Newfound economic Prosperity due
to expedited trade routes to Asia and
East Africa but back at home the project
had its costs to alleviate Financial
pressures Ismael Pasha the successor of
SED Pasha was compelled to sell his
share of the canal to the United Kingdom
in
1875 marking a significant shift in
ownership later in 1882 due to local
unrest the British invaded Egypt and
took full control of the canal however
while the British and French exerted
significant influence over the canal
Egypt technically remained part of the
Ottoman Empire until the British
occupation under British supervision the
canal thrived with Evelyn bearing first
Earl of chromer implementing reforms to
modernize governance and suppress unrest
ensuring the smooth flow of traffic
through the canal the Strategic
importance of the canal was further
highlighted during times of conflict
such as the first world war when British
forces successfully defended it against
ottoman attacks in
1915 later on throughout the second
world war the canal remained a vital
artery for the Allied Forces the Suez
Canal Crisis following the second world
war the world was quickly moving past
the era of colonialism and monarchy
Egypt was no different the nation gained
independence from British control on
February 28 1922 under Sultan Ahmad fuad
I however Egypt remained a
constitutional monarchy with fuad as the
king until the Egyptian revolution of
1952 which led to the establishment of
the Republic of Egypt and the end of the
monarchy a democratic Egypt under
President Gamal Abdul Nasser was not
willing to bow down to its Colonial
past however Egypt’s overtures towards
the Soviet Union and its subsequent
nationalization of the canal in July
1956 prompted a Swift and forceful
response from Western Powers the
situation got further inflamed when the
Egyptian president transferred control
of the canal to the Suz Canal Authority
and closed the Straits of Tran to
Israeli ships in response to these
actions the UK France and Israel
launched a coordinated invasion of Egypt
known as the Suez Crisis under the
pre-agreed war plans Israel initiated
hostilities by invading the Sinai
Peninsula on October 29th forcing Egypt
into military engagement the
anglo-french partnership then intervened
to regain control of the canal this
outrageous militarism led to widespread
International
condemnation in response the Canadian
Secretary of State for external Affairs
Lester B Pearson proposed the creation
of the first United Nations peacekeeping
Force to diffuse tensions and ensure
access to the canal for all parties on
November 4th 1956 the United Nations
voted in favor of Pearson’s peacekeeping
resolution backed by pressure from the
United States this resolution mandated
the deployment of un peacekeepers to the
Sinai Peninsula until both Egypt and
Israel agreed to their withdrawal the
ceasefire brokered by the UN coupled
with diplomatic efforts spearheaded by
Pearson ultimately led to the withdrawal
of British and French troops from Egypt
by the end of the year Pearson’s role in
resolving the crisis earned him the no
Nobel Peace Prize despite the cessation
of hostilities the canal remained closed
until April 1957 as a result of damage
inflicted during the conflict with
assistance from the United Nations
efforts were made to clear the canal and
establish a un peacekeeping Force to
ensure its continued navigability and
maintain peace in the Sinai Peninsula
however troubles for the canal and the
World Trade were far from over on May
16th 196 7 Egyptian president Nasser
ordered the withdrawal of UN
peacekeeping forces from the Sinai
Peninsula including the Suz Canal area
and deployed Egyptian troops in their
place Israel objected to nasser’s
subsequent closure of The Straits of
Teran to Israeli trade on May 21st
escalating tensions in the region the
1967 6-day war resulted in Israeli
occupation of the Sinai Peninsula
including the East Bank of the Suz canal
subsequent years saw heightened tensions
between Egypt and Israel culminating in
a war of attrition from March 1969 to
August 1970 as Egypt sought to reclaim
occupied
territories however in the midst of it
all president Nasser died in September
1970 this marked a temporary cessation
of hostilities but underlying tensions
persisted Egypt unwilling to permit
Israeli use of the canal imposed a
blockade until
1975 during the Yum Kapur war on October
6th
1973 the canal became a Battleground as
Egyptian forces launched operation B
Crossing into Israeli occupied Sinai
Israeli counterattacks ensued with
Israeli forces crossing the canal into
Egypt and advancing towards Suz City by
October 22nd
1973 however on January 18th 1974 the
Sinai separation of forces agreement was
signed leading to the withdrawal of
Israeli forces from the western side of
the Suz Canal following the Y kapor War
the United States spearheaded operation
Nimbus moon to clear the Suez Canal of
Mines simultaneously the British royal
Navy launched operation riat to ensure
the Canal’s safety by 1975 these
clearance operations had rendered the
canal and its Lakes 99% mine-free
Egyptian president president anoir Sadat
accompanied by Iranian Crown Prince Raza
palavi symbolically reopened the canal
aboard an Egyptian Destroyer leading the
first Northbound Convoy to Port SED in
975 however the United Nations emergency
Force mandate expired in
1979 consequently negotiations resulted
in the establishment of the
multinational force and observers in
Sinai in 1981 coordinating with Israel’s
phased withdrawal
Egypt normalized relations with Israel
after that allowing for uninterrupted
trade operations through the canal over
the decades the canal became so pivotal
that in 2014 Egyptian president Abdul
fat Eli initiated an expansion project
termed the new Suz Canal this expansion
enables two-way Transit reducing
congestion and enhancing efficiency
completed within a year at a cost
exceeding 9 billion us do the expanded
Channel marked a significant milestone
in the Canal’s modernization and
economic importance however through it
all the canal saw many turbulences and
troubles notable obstructions in the Suz
Canal the canal has long been an artery
for maritime traffic and trade thus any
disruptions affect trade all over the
world this happened in 2004 when the
canal faced a 3-day closure when the oil
tanker Tropic brilliance became stuck
disrupting Maritime traffic then on the
18th of October 2017 the O Japan ran
around causing a brief obstruction that
halted Canal operations for a few hours
albeit on a smaller scale however the
most notable obstruction occurred in
March 2021 when the ultra-large
container ship ever given operated by
Evergreen Marine ran ground due to
strong winds blocking the canal in both
directions this incident garnered Global
attention due to the critical role the
Suez Canal plays in international trade
the everg grounding completely halted
the passage of vessels through the canal
trapping numerous ships carrying
essential Goods including oil shipments
which were severely affected economists
and trade experts expressed concerns
about the potential economic impact of
the blockage as the Suez Canal serves as
a vital artery for Global Commerce with
up to $3 billion worth of cargo passing
through it daily to alleviate the
backlog and resume normal operations
efforts were undertaken to refloat the
everg given it was successfully
refloated on the 29th of March 2021
allowing cargo traffic to gradually
resume however the backlog of ships
awaiting passage took several days to
clear with approximately 450 vessels
affected following the everg given
incident the Suez Canal Authority
announced plans to wide in narrower
parts of the canal to mitigate future
blockages despite these efforts another
grounding occurred on the 9th of
September 2021 when MV Coral Crystal
briefly blocked the canal fortunately it
was swiftly freed minimizing disruption
to Maritime traffic in May 2023 another
grounding incident occurred involving
the Hong Kong flagged cargo ship MV
shinai Tong 23 near the southern end of
the canal
however tugboats were able to refloat
the vessel within a day preventing
significant disruption to Canal
operations while all of these events
were disruptive nothing has ever been
more dangerous for the canal than what
Russia has planned for it Russia’s need
for alternative trade routes Russia is
bordered on two sides by Frozen Waters
of the Arctic and to the West the
European nations had imposed crippling
sanctions in the wake of the Ukraine war
as Russia faces increasing isolation
from the International Community
economic sanctions imposed by Western
Nations have tightened targeting key
sectors like energy finance and defense
significantly impacting Russia’s trade
activities and Global Market access the
search for alternative Roots is thus
crucial for Russia to ensure the
continuity of its trade flows and
mitigate the adverse effects of
international
isolation additionally the conflict in
Ukraine has disrupted stability and
security impacting Maritime trade routes
in the Black Sea region ongoing tensions
and Military activities in the area
heighten security concerns and increase
risks associated with transporting goods
through key waterways like the Black Sea
and the bosor strait but that’s not all
recent developments in the Red Sea add
another layer of complexity to global
trade Dynamics the attacks by the
houthis from Yemen on Israel bound or
associated cargo ships have further
diminished traffic in the region since
the outbreak of the Gaza war in October
2023 these attacks have instilled fear
among shipping companies leading to a
reluctance to risk transporting goods
through the Red Sea despite efforts by
Western allies to protect vessels in the
region the heightened security risks
have prompted shipping companies to seek
alternative routes contributing to a
decline in traffic through the Red
Sea this combined impact of disruptions
in both the Suez Canal and the Red Sea
underscores the pressing need for
Diversified trade routes and heightened
security measures to safeguard global
trade and economic stability in response
to these challenges Russia is looking
towards alternative transportation
corridors such as the international
Norths South transport Corridor or nsdc
to diversify its trade routes and reduce
dependence on vulnerable Maritime choke
points like the Suez Canal
by developing alternative transportation
networks Russia aims to maintain
economic resilience and secure its trade
interests amidst a volatile geopolitical
landscape This spells death for the Suez
Canal the international north south
transport Corridor the international
north south transport Corridor or insdc
spans over 7,200 km or 4,500 Mi
connecting India Iran aeran Russia C
Central Asia and Europe signed on the
16th of May 2002 by Russia Iran and
India this agreement aimed to enhance
trade connectivity among major cities
such as Mumbai Moscow tan Baku bandar
abas asran and bandar
anzali this Corridor will facilitate
Freight movement via ship Rail and Road
one of the key advantages of the nstc is
its positioning as an alternative to the
Suez Canal route this alternative is
particularly beneficial for countries
like Iran and Russia both of whom are
subject to us sanctions moreover it
offers cost Effectiveness and saves
significant travel time a survey by the
Federation of freight forwarders
associations in India found that the Inc
route is 30% cheaper and 40% shorter
than the traditional route via the Suez
Canal the primary objective of the
international north south transport
corridor is thus to revolutionize trade
routes by significantly reducing costs
in terms of both time and money compared
to the traditional routes currently in
use azerbajan plays a crucial role in
the project providing essential Road and
rail routes that enhance transport
connectivity between India Iran aeran
Russia and
Kazakhstan Iran has also undertaken
significant construction efforts to
ensure connectivity via Railways roads
Bridges and tunnels these enhancements
will facilitate seamless transportation
across the region further strengthening
trade ties moreover the integration of
Iran’s chabahar Port into the corridor
offers promising prospects for expanding
trade routs India and Iran have
collaborated to develop chabahar into a
full deep sea port with plans to
increase its capacity
significantly chahar’s ability to handle
larger cargo ships and its strategic
location
makes it an attractive hub for trade
particularly with Europe via the
nstc Additionally the completion of the
Kazakhstan Turkmenistan Iran Railway
link has bolstered Regional
connectivity this Railway line spanning
over 677 km connects Kazakhstan and
Turkmenistan with Iran and the Persian
Gulf providing a crucial multimodal
transport system for both goods and
passengers with joint funding from Kaz
aan Turkmenistan and Iran this project
demonstrates a collaborative effort to
enhance regional trade and connectivity
in addition to railway projects Iran’s
strategic initiatives such as the
integration of aara port with the
project and the construction of the Iran
rude trans Iranian Canal will enhance
Maritime connectivity and trade routes
across the region the port of aara
inaugurated in March 2013 serves as a
vital link across the Caspian C C
facilitating the transportation of goods
between Russia azerbijan Kazakhstan
Turkmenistan and India meanwhile the
Iran Rood Canal project aims to create a
navigable Waterway linking the Caspian
Sea to the Indian Ocean further
enhancing regional trade and
connectivity project Partners even
conducted a bottleneck study in 2014 to
address key challenges in transportation
along the corridor the study revealed a
significant cost reduction of 2
$2,500 per 15 Tons of cargo highlighting
the potential efficiency gains for the
countries
involved fast forward to July 7th 2022
and the Russian company rzd Logistics
announced the successful completion of
its first transport of goods to India
via the corridor this was also confirmed
by Iranian and Indian trade companies
the end of the Suez Canal route thus is
nearer than it first seemed this also
brings in a whole host of complications
implications for global trade Dynamics
just as the Suez Canal transformed
Global connectivity the international
north south transport Corridor is also
bound to be a highly consequential
project as the corridor unfurls its
promise of enhanced connectivity and
accelerated trade the implications
Ripple far beyond its physical borders
reshaping the very fabric of global
Commerce and diplomacy at the heart of
this seismic shift lies the intricate d
between Russia and China long-standing
allies yet strategic competitors these
nations find themselves at a Crossroads
navigating a landscape fraught with
economic uncertainties and geopolitical
complexities for Russia the nsdc
represents a double-edged sword it is a
gateway to Newfound prosperity and
influence yet also a potential challenge
to its traditional ties with China as
the corridor opens up alter ative trade
routes to Europe and Beyond Russia must
tread carefully balancing its interests
in the East with its aspirations in the
West for China the instc presents both
opportunities and challenges on one hand
the corridor offers a tantalizing
shortcut to Europe bypassing traditional
Maritime routes and reducing transit
times as the world’s largest trading
Nation China stands to benefit immensely
from enhanced connectivity and
streamlined Logistics yet lurking
beneath the surface lies the Spectre of
geopolitical competition will China
embrace the NC as a catalyst for global
trade or will it view Russia’s overtures
to the West with suspicion only time
will tell on the global stage the
implications of the einc reverberate
with profound significance as the
corridor blazes a trail of innovation
and cooperation it challenges the
hegemony of traditional trade routes and
redraws the map of global Commerce with
its potential to reduce transport costs
by 30% and shorten travel distances by
40% the instc promises to reshape Supply
chains redefine market dynamics and
unleash a wave of economic growth but
fears and suspicions have already begun
surfacing much like the Suez Canal this
new route to can become a Battleground
for competing interests fueling tensions
and exacerbating geopolitical rivalries
so far all we know for sure is that
global trade will never be the same
again well that’s it for now thanks for
watching don’t miss this video you see
on your screen right now it’s truly
unbelievable
IT’S OVER: The Suez Canal Has FINALLY Dried Up
Today, the Suez Canal facilitates up to 20,000 transits per year, which totals approximately 1.17 billion tons of cargo, worth around $800 billion! It is the jugular of global trade, and rightfully so, as it facilitates global commerce and trade between Europe, Asia, and beyond. Connecting the Mediterranean Sea to the Red Sea, it significantly reduces the time and cost of maritime transportation between Europe and Asia. However, all of this may change sooner than we’d want. Stick around as we explore the reasons behind this impending crisis and its potential ramifications!