STRATEGIC SIGNIFICANCE OF THE SUEZ CANAL: Analyzing Maritime Chokepoints, Geopolitical Equilibria, and their Impact on World Trade Flows

Abstract

Maritime chokepoints are narrow geographic passages through which ships pass to enable the exchange of goods between countries around the world. Considering that maritime shipping is the primary way to transport these goods, many chokepoints have become strategic resources for the countries controlling them. This research aims to explore the significance of the world's key maritime chokepoints, examining their economic and strategic importance both historically and presently, alongside the primary geopolitical risks they face, whether stemming from environmental or political factors. The focus will be placed on the Suez Canal, currently at the center of international debate. The analysis will delve into the canal’s history, from its construction to recent events. Its global importance will be highlighted by showing economic data testifying the annual maritime traffic statistics. Additionally, alternative sea routes will be presented to mitigate temporary closures or obstacles. Furthermore, future investment plans affecting the Suez Canal will be analyzed. The concluding chapter will broaden the scope to a global horizon. Recent events in the Suez Canal, geopolitical tensions, and increasing conflicts may imply a rethinking of the direction of the economy: are we still moving toward a globalized world or are we facing fragmentation? This discussion includes the key stages of globalization in the past and the contemporary reconfiguration of the global supply chain, including the return of geopolitics and reshoring trends. Finally, the research will speculate on the potential future of shipping and its evolutionary path.