Read The Times Australia

Daily Bulletin

What the expansion of the Suez Canal shows about shifts in global shipping

  • Written by: The Conversation
imageVyacheslav Argenberg, CC BY

Egypt has opened a second lane to the Suez Canal amid much fanfare. The US$8 billion dollar expansion adds 35km of new channels to the existing canal and another 35km where existing bodies of water were dredged to make way for larger ships. This will supposedly increase capacity from 50 transits a day to 97 and cut waiting times from 18 to 11 hours, which the Suez Canal Authority claims will more than double annual revenue to US$13.2 billion by 2023.

By cutting the distance between Europe and Asia by 43%, the Suez Canal’s opening in 1869 dramatically lowered the cost of moving goods between the two continents. Suez – like the Panama Canal, which is also currently undergoing expansion – drew distant places together, facilitated the expansion of national economies, and accelerated globalisation.

Yet in the 21st century, driven largely by growth in China’s manufacturing exports, there are now many more ships plying the sea lanes. And these ships are increasing in size. The world’s largest is the size of four football fields and can carry 19,000 20-foot cargo containers. As a result, the narrow passages that provide economical links between centres of production and consumption – like Panama, Suez and Malacca – are as much obstacles to global trade as facilitators of it.

imageHighly symbolic: Egyptian president, Abdel Fattah al-Sisi, opening the expanded Suez Canal.EPA

Imperatives to smooth the flow of commodities, as well as provide insulation from the disruptions of piracy, are also driving the development of alternative routes. These include the new Chinese-backed Silk Road initiative that connects China to Europe over land and sea, and the Russian-controlled Northern Sea Route through the Arctic, which is becoming more accessible as a result of climate change processes. The expansion of Suez is therefore part of a much larger picture of global growth in shipping.

Laden with symbolism

Shipping routes are not purely about supply chains and economics. They are culturally and symbolically laden – particularly because they involve re-tracing historical trade routes. European legacies of discovery and natural conquest live on through the desire to master routes across the Arctic. And similarly the Chinese government’s Silk Road initiative, dubbed “one belt, one road”, invokes an imagined community of trade, linking China to both its neighbours and its past.

As anthropologist Brian Larkin proposes, material infrastructure is often implicated in dynamics that have little to do with their technical functions. The carving of these routes is as caught up with the carving of national identities, as it is with extending a state’s geopolitical reach and increasing its revenue. The recent opening of the new Suez Canal is as much a symbolic response to terrorist threats by the Egyptian government as it is an attempt to bolster Egypt’s global standing.

imageMassive: a CSCL Globe shipping container, the size of four football fields.Keith, CC BY-SA

Indeed the speed of the canal’s upgrade has astonished many. Completed in just 11 months, trade routes now seem subject to the same accelerated cycles of upgrade and obsolescence as the goods that move through them. Drummed up by their architects and promoters, there is also a similar sense of hype and anticipation that is built around these projects, which invariably all promise to transform global trade.

Future problems

Yet, even with the expansions, Suez and Panama will still not be able to accommodate the world’s biggest oil tankers and container ships, making them in a sense, already obsolete. A Chinese consortium, however, is developing a new 175-mile long canal through Nicaragua, which will be capable of handling the world’s biggest vessels. The project will provide an alternative to the Panama Canal, but faces vociferous opposition from the farmers, peasants and indigenous groups whose lands are set to be annexed by this new artery of global trade. Thousands of people were reportedly evicted from their homes to facilitate Suez’s expansion too.

imageNot everyone’s happy about the growth.EPA/Mario Lopez

There are inevitable ecological implications associated with reshaping land and seascapes on such a vast scale too. Suez’s opening in the late 19th century not only facilitated the global movement of goods, but the massive transfer of invasive species. Some 350 non-native species are thought to have entered the Mediterranean via the canal, many of which pose significant threats to human health and local ecosystems.

For instance swarms of “nomad jellyfish”, which entered the Mediterranean via Suez in the 1970s, frequently make commercial fishing impossible, can close tourist beaches, and have even temporarily disabled a power station. The enlargement of the canal, scientists have warned, will increase the number of invasions.

Footprints in the sea

Unlike paths etched through landscapes, oceans retain no footprints. But the intensity of modern-day dredging, as well as the largescale transfer of marine biota, means that seascapes will bear the mark of these projects long after the activities which gave rise to them cease.

The expansion of Panama, scheduled for completion next year, has triggered a wave of frenetic dredging activity along the Atlantic coast, as ports are forced to expand or face losing traffic to competitors. New York’s port alone has moved some 42m cubic yards of dirt over a decade in anticipation of the opening of an expanded Panama Canal. Thousands of years from now, archaeologists will be able to find the channels carved through our oceans by all this movement.

So, while the economic significance of the expanded Suez is in doubt, its symbolic value is certain. Its legacy is unlikely to be its consequences for global trade, but to further contribute to such a dramatic reshaping of the planet by human activity.

Satya Savitzky does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond the academic appointment above.

Authors: The Conversation

Read more http://theconversation.com/what-the-expansion-of-the-suez-canal-shows-about-shifts-in-global-shipping-45925

Business News

How Businesses Can Prepare for Unexpected Power Outages

Power failures can occur quickly. The supply may be interrupted by bad weather, issues with the electricity network, damaged equipment or local construction work. This can be just a hassle for a fam...

Daily Bulletin - avatar Daily Bulletin

How Chatswood Tutoring Can Fit Into a Student’s Weekly Routine

Create a Predictable Weekly Structure A consistent weekly routine can make study easier to manage when students are balancing several subjects. Chatswood tutoring can provide a fixed learning point a...

Daily Bulletin - avatar Daily Bulletin

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

GRC Consulting and Cyber Security Consulting for Businesses

Businesses face risks such as ransomware attacks, data breaches, violations of regulatory standards ...

How to Set a Budget Before Bidding at Auction

Placing a bid at an online art auction is an exciting way to discover rare paintings, home content...

Does a Modern James Bond Exist?

Image Credit: MysteryShot What the Movies Get Right About Private Investigators There are a few mov...

How Australian Businesses Can Effectively Manage Tax Audits and Disputes

Managing a small business in Australia is inherently challenging, but recent shifts in regulatory ...

From Coastal Calm to Classic Comfort: The Right Carpet for Every Style of Home

Carpet is often chosen near the end of a room makeover, after the walls, furniture, and lighting h...

How to Add a Heart to a Photo in Seconds

Visual storytelling has rapidly evolved in the digital age, transforming how we share our daily expe...

Why Small-Denomination Physical Gold is Becoming the Ultimate Defensive Asset

In a landscape of lingering macroeconomic uncertainty and rising domestic living costs, everyday i...

Why Your Feet Spread During Running and What That Means for Shoe Fit

The trainers felt brilliant in the shop. You walked around, bounced on your toes, checked the mirror...

How to Vet and Hire the Right Property Expert in the Australian Market

Navigating the Australian real estate market has become a highly strategic exercise. Recent nation...