IMPORTANCE OF SUEZ CANAL IN WORLD TRADE...

Because the Suez Canal has a privileged geographic location, this is a very important element for maritime transport being this one of the cheapest means of transportation and considering that over 80% of world trade is operated through waterways. Ships transiting the canal can save time, distance and operating costs. Suez Canal can be expanded and deepened when necessary and thus it adapts to the evolution of the sizes and weights of ships.

In Europe Suez Canal is very important for the oil and trade with Asia, because it reduces its distance from this country, therefore, companies reduce fuel payments, spend fewer days in the transport of their products and as a  result growing the world economies. The majority of developing countries are located in the Middle East and Asia, accordingly the developed countries of Europe establish factories in these borders because these countries have cheap labor. On the other hand United States needs the Suez Canal for transporting troops and military equipment to Afghanistan.

Egypt produces little oil but occupies a strategic position on the international sea shipping route of oil barrels between the Arabian Peninsula and Western countries. It controls the Suez Canal and Suez-Mediterranean oil pipeline, which daily pass 3,000 million barrels through these two infrastructures. Egypt through this canal has power in the world economy due to taxes it receives from ships transiting there. Because Egypt needs labor force to repair the erosion of the coastlines and to defend them of other countries, it hires the Egyptians society to perform these tasks and thus reduces the unemployment rate in the country.

In conclusion the Suez Canal has been and will remain a strategic point for the development of the world trade, because it allows commercial exchange between developing and developed countries generating employment opportunities, allowing the transport of food and other products indispensable for the progress of a country.




http://www.telegraph.co.uk/news/worldnews/africaandindianocean/egypt/11426746/The-Suez-Canal-by-numbers.html