In the last week of March, the world received an unexpected reminder of global connectedness and interdependence. The 190-kilometer long Suez Canal, an important waterway that connects the Red Sea and the Mediterranean Sea, was obstructed after one of the largest container ships on the planet, the 400-meter long Ever Given, ran aground near the canal’s southern end. After six days of international efforts, the ship was successfully refloated, and it became possible again for ships to transit this vital passage. The causes of the incident are not yet known, and Egyptian authorities have announced a comprehensive investigation into the matter.

The container ship Ever Given is seen stuck in the Suez Canal, blocking all traffic. [Source: BBC, EPA]
The container ship Ever Given is seen stuck in the Suez Canal, blocking all traffic. [Source: BBC, EPA]

The Suez Canal is one of a handful of waterways that are considered naval chokepoints. This category also includes the straits of Hormuz and Bosphorus and the Panama Canal, all of which are narrow passages that face a significant prospect of logistical as well as geopolitical risks. The Suez Canal offers the shortest shipping route between Europe and Asia and provides passage to 12% of global trade. The main alternative route passes close to Cape of Good Hope in South Africa and takes weeks longer for a typical container ship. In addition to increasing the cost of travel, this route is also considerably more accident-prone to large-scale shipping. Another alternative is the Northern Sea Route, which runs along Russia’s arctic coast and lies completely inside the Russian exclusive economic zone. This route is free of ice only for a couple of months in a year, and unpredictable and unfavorable environmental conditions add to the difficulty of crossing this route for the most part of a year. Moreover, this route currently lacks the necessary infrastructure for global-scale shipping. However, it is expected to become more conducive to large scale trade owing to the melting of the Arctic ice caps and the Russian government’s plans to develop and promote this route as the main alternative to the Suez Canal. Diversification of travel routes is key to decreasing the burden on the aforementioned chokepoints and ensuring that global trade networks remain resilient in the face of unfavorable events.

Goods worth about 10 billion USD pass through the Suez Canal daily. A backlog of more than 400 ships was created due to the Suez Canal blockage. In addition to the already lost time, this backlog will lead to a large number of ships arriving at their destination ports at once, which will lead to congestion at ports and place the ports’ infrastructure under unprecedented stress. Most modern-day trade relies on just-in-time delivery chains, where money is saved on storage by delivering goods and raw materials right before they are needed for sales or manufacturing processes. As a result of this trading model, the effects from one week of delayed shipments will be further magnified. Just-in-time delivery models have been a major reason for the shortage of medical supplies throughout the coronavirus pandemic, and the canal obstruction strengthens the argument that such delivery models are too unreliable and fragile. Industries must be required to maintain a reserve storage to safeguard against the risk of interruptions in delivery.

Oil trade is a significant part of the Suez Canal traffic about a million barrels transit daily. Not only is the consumption of oil a major cause of global warming, but the transportation of oil through the seas itself is a source of great pollution. For instance, ships leave behind significant amounts of black carbon throughout their trail. These particles, in addition to being highly toxic and known to spread across large distances, absorb a significant amount of solar radiation and contribute significantly to rising ocean temperatures. In fact, shipping is considered to be one of the top causes of melting ice caps in the Arctic Ocean, which is warming about twice as fast as the entire world. Moreover, oil spills have resulted in extensive, irreparable damage to marine life and to the animals on surrounding lands. These prospects for environmental damage implore us to abandon the use of fossil fuels and turn to renewable energy sources. Not only are they more environmentally friendly and sustainable in several ways, but this change will also contribute to reducing the burden on naval trade routes and lowering the chances of accidents and obstructions at the seas.

This unexpected occurrence brought forth two much needed reminders. First, our way of life is critically dependent upon trade and cooperation among countries throughout the globe, and isolationism has no place in the modern world. Second, our planet’s intricate and fragile ecosystems are under unparalleled stress, and it is imperative to collectively work towards formulating and implementing policies to promote sustainability.

Copyright © The KAIST Herald Unauthorized reproduction, redistribution prohibited