To lose one canal is careless, but two…Simultaneous
disruption in the Panama and Suez canals, two vital corridors for
global trade, is threatening global supply chains in the run-up to
Christmas. Shipowners and importers have warned that a drought in the
Panama Canal and a spate of attacks on cargo vessels 11,500km away near
the Suez Canal risk constraining traffic ahead of the festive season.
“There are supplies that just won’t be here in time for this Christmas…”
This
October was the driest in the Panama Canal region since at least 1950,
according to the canal authority, partly owing to the El Niño weather
phenomenon that has affected temperatures and rainfall globally. The
authorities have for the first time reduced the number of crossings,
which by February will be limited to only 18 ships a day. “That drought
in the Panama Canal is a serious concern,” said Rolf Habben Jansen,
chief executive of German group Hapag-Lloyd, the world’s fifth-largest
owner of container ships, which ferry most of the world’s manufactured
goods. At least 167 ships crossed the canal during the first week of
December this year, compared with 238 last year…
Source: FT
Below are three narrow maritime openings, all crucial to global trade:
Getting
past Egypt and through the Suez Canal is the first hurdle for ships —
and the pliant Egyptian regime of Sisi helps to ensure safety for
Western interests — but getting that far is not enough for plain
sailing. Yemen can present a challenge too, where Houthis are leading
the region in practical opposition to Israel amid its assault on Gaza:
So while climate challenges trade in the Panama Canal, on the other side of the world trade is disrupted by war and its effects.
Source: FT