International trade is concentrated on 5 routes, and 3 of them are at risk of conflict
Maritime international trade routes are the routes used by ships to transport goods and play a crucial role, due to their geostrategic position and the volume of goods they handle.
These maritime highways are the result of climatic, oceanographic, energy, legal and security factors, as well as the availability of intermediate ports.
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They are used by shipping companies that concentrate the transport of goods, smaller merchant fleets and individual vessels working under contract.
Highlights include the Suez Canal, a key link between Europe and Asia; the Panama Canal, a driver of trade in Latin America; the Strait of Hormuz, essential for transporting oil worldwide; the Strait of Gibraltar, a bridge between Africa and the West; and the Strait of Malacca, a vital route for trade in Asia.
Here are the main characteristics of the maritime trade routes that move the world economy.
Suez Canal, key to international trade
Topping the list of major maritime trade routes is the Suez Canal. This is the longest artificial waterway in the world and connects the Mediterranean Sea with the Indian Ocean, via the Red Sea.
Officially inaugurated in 1869, its construction began in 1859 to facilitate international trade between Europe and Asia, avoiding bypassing Africa.
Today, it covers 10% of the world’s maritime trade, with a flow of about 20,000 ships per year. In 2022 alone, approximately 25,000 ships mobilized more than 500,000 tons of cargo.
The Suez Canal faces serious problems in its immediate surroundings, such as instability in the Middle East and its proximity to Israel, Palestine and Syria, places where tensions are constant.
The Panama Canal
The Canal was built at the beginning of the 20th century and connects the Atlantic and Pacific oceans. It is one of the keys to Panamanian economic development and one of the main elements in the growth of international trade, especially for Latin America.
It has a length of only 80 km, a width that varies between 91 and 300 meters, and an average depth of 13 meters. It is estimated that some 14,000 ships crossed through it last year, with a cargo equivalent to 291 million tons.
Although the canal is under Panama’s political control, U.S. influence in the country continues to be relevant, as it is the main user.
Despite the instabilities in the region and the high crime rate, the situation in the canal remains stable. In the neighboring country, the main crime hotspots focus on human and drug trafficking organizations, mainly in the Darien jungle, which is the only land entry point to Central America from South America. However, these organizations do not appear to pose a real threat to the transit and proper functioning of the canal.
Of the maritime trade routes, both the Panama Canal and the Strait of Gibraltar are the only maritime traffic bottlenecks that enjoy stability.
As for the year 2023, it is unlikely that the flow of merchant ships will be affected and pose a risk to international maritime trade.
Strait of Hormuz
The importance of this maritime route lies in the fact that it is one of the main routes for the global oil trade. It connects the Persian Gulf with the Indian Ocean and facilitates the transit of goods between the West and the East.
The Strait of Hormuz is 280 km long and 33 km wide at its narrowest point, through which 46% of the oil and 26% of the liquefied gas traded worldwide passes.
With respect to other maritime trade routes, the Strait of Hormuz is in a conflictive situation due to geopolitical competition in the region.
While the rivalries between Iran and Saudi Arabia seem to be diminishing with the restoration of diplomatic relations, the war in Yemen continues.
Strait of Gibraltar
It is the main maritime route in international trade between the African continent and the Western world. It is 60 km long and only 14 km wide between the nearest continental points. Every year, some 100,000 vessels transit through it, 10% of international traffic.
Among maritime trade routes, this passage enjoys stability thanks to a combination of geographical factors, efficient infrastructures and political stability among the countries of the region.
The Strait of Gibraltar, being a main maritime route in international trade between Africa and the Western world, benefits from the good relationship and cooperation between Spain and Morocco, the two countries that share its coasts.
Strait of Malacca
Formed between the coasts of Malaysia and the island of Sumatra in Indonesia, it is the busiest natural strait on the planet. It connects the Pacific Ocean with the Indian Ocean and is 930 km long and 135 km wide on average.
Thirty percent of the world’s trade passes through this strait. It also connects the markets of China, South Korea, Japan, Singapore, Malaysia, India and Thailand, making it one of the most important maritime trade routes in the world.
Currently, the stability of the Strait of Malacca is conditioned by international relations and the dispute between China and India for control of the region.
Tensions between the United States and China over Taiwan could also result in a blockade of the strait. Although the likelihood of armed conflict in 2023 is low, it would have serious consequences for transit and the global economy.
Piracy in the area, mainly in the Riau archipelago and the Aceh region, generates additional insurance costs for shipping lines and affects the final price of the supply chain. In addition, the presence of jihadist and terrorist groups can destabilize neighboring countries and use piracy as a source of financing.
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