Subject category:
Economics, Politics and Business Environment
Published by:
Amity Research Centers
Length: 12 pages
Data source: Published sources
Abstract
On May 23rd 2021, 'Ever Given', a 400 metres long giant container vessel wedged across the Suez Canal, holding-up a number of vessels at either ends of the canal. The Suez Canal was an important trade route connecting Port Said on the Mediterranean Sea to the Indian Ocean through the southern Egyptian city of Suez on the Red Sea. The route created a direct shipping passage between Europe and Asia, eliminating the need to go around Africa and significantly reducing voyage times. The blockage of this main waterway caused a huge economic impact on world trade. The Ever Given was holding up nearly USD9.6 billion of trade along the waterway each day. Finally, when the Ever Given was dislodged from the banks of the Suez Canal on March 29th 2021, shipping experts were re-evaluating the fundamental assumptions about shipping and world trade. They examined the vulnerability of the canal in the context of changing weather, terrorism and other emergent threats. Meanwhile, Russian officials had used the situation to promote the Northern Sea Route. Would alternate routes be developed and lessen the importance of the Suez Canal? What would be the road ahead for trade through the canal?
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Time period
The events covered by this case took place in 2021.Geographical setting
Region:
World/global
About
Abstract
On May 23rd 2021, 'Ever Given', a 400 metres long giant container vessel wedged across the Suez Canal, holding-up a number of vessels at either ends of the canal. The Suez Canal was an important trade route connecting Port Said on the Mediterranean Sea to the Indian Ocean through the southern Egyptian city of Suez on the Red Sea. The route created a direct shipping passage between Europe and Asia, eliminating the need to go around Africa and significantly reducing voyage times. The blockage of this main waterway caused a huge economic impact on world trade. The Ever Given was holding up nearly USD9.6 billion of trade along the waterway each day. Finally, when the Ever Given was dislodged from the banks of the Suez Canal on March 29th 2021, shipping experts were re-evaluating the fundamental assumptions about shipping and world trade. They examined the vulnerability of the canal in the context of changing weather, terrorism and other emergent threats. Meanwhile, Russian officials had used the situation to promote the Northern Sea Route. Would alternate routes be developed and lessen the importance of the Suez Canal? What would be the road ahead for trade through the canal?
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Settings
Time period
The events covered by this case took place in 2021.Geographical setting
Region:
World/global